Several interconnected power systems worldwide have largely thermal and hydro production along with carbon cap-and-trade (C&T) systems and variable renewable energy sources (VRES). C&T policies increase VRES generation, and socially optimal storage deployment could integrate VRES output....

The decarbonisation of electricity generation presents policy-makers in many countries with the delicate task of balancing initiatives for technological change whilst maintaining a commitment to market liberalisation. Despite the theoretical attractions, it has become debatable whether carbon...