Economists argue that such market-based policy instruments as environmental taxes and emission trading systems are the best way to target the negative effects of pollution. Yet there is no agreement about whether the use of these instruments is sufficient, whether they are deployed efficiently,...

With the ratification of the Kyoto protocol and the installation of the European Emission Trading Scheme, the European Union’s governments showed a basic willingness to commit themselves to environmentally friendly policies. But today, the success of these commitments is questionable: all of...

This paper presents a model for assessing economic losses caused by electricity cuts as well as Willingness-to-Pay to avoid these power outages as an approximation to the value of supply security. The economic effects for simulated power cuts from 1 to 48h, which take the affected provinces, the...