Climate Change and Environmental Policies in the European Electricity Sector
41 Pages Posted: 14 Dec 2016
Date Written: June 30, 2011
One of the greatest challenges faced by the European electricity sector at present, and the foreseeable future, is the need to meet stringent environmental objectives designed to mitigate the risk of costly climate change. This article surveys the main elements of the economics of climate change, with specific attention on the European power sector. It also reviews current and announced European environmental policies in the electricity sector. In order to meet environmental objectives in the most-cost efficient way, this article suggests that greater emphasis should be placed on the carbon pricing and trading and on the technology neutral promotion of low-carbon sources of power, and less on separate renewable electricity targets.
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