In principle, linking emission trading schemes would favour the depletion of low-cost abatement opportunities that are geographically spread over the globe. However, this would only be possible if the price of the emission permits in the different schemes converge to one price. Using a simple...

This paper develops a simple model to evaluate the value and the activation frequencies of a generation system consisting of coal-fired and a gas-fired power plants using a real options approach, and the notions of clean-spark and clean-dark spreads. Under a cap-and-trade scheme, the use of...

This report summarises the presentations and discussions during the workshop on the ETS Market Stability Reserve (MSR), held on the 5th November 2014. The aim of the workshop was to allow an exchange of views between MEPs, the European Commission, stakeholders from energy and industry sectors...

This report summarises the presentations and discussions during the workshop on the ETS Market Stability Reserve (MSR), held on the 5th November 2014. The aim of the workshop was to allow an exchange of views between MEPs, the European Commission, stakeholders from energy and industry sectors...

World power and gas markets have a natural relationship with global tradable carbon permits markets, including the U.S. Clean Air Act Amendments and the EU Emissions Trading Scheme, the latter officially launched in January 2005. Electric utilities operate their power plants based in part on the...