Many technologies that produce electricity from renewable energy sources are currently not competitive. This is due to the fact that their generation cost is higher than that of conventional thermal power plants. Nevertheless, since using renewable energies has a number of positive effects,...

This paper analyzes the impact of the EU ETS on CO₂ reduction in the German electricity sector. We find an ETS-induced emission abatement which is not exceeding 6% of total emissions with a maximum already in 2010. Thereafter the ETS has not induced additional reductions. This outcome is...