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Climate policy and the social cost of power generation: impacts of the Swedish national emissions target
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0003-2264-7043
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.
2008 (English)In: Energy Policy, ISSN 0301-4215, E-ISSN 1873-6777, Vol. 36, no 11, p. 4154-4158Article in journal (Refereed) Published
Abstract [en]

The purpose of this paper is to discuss how the design of climate policy in a small open economy may affect the internalization of carbon-related external costs and ultimately the social choice between different power generation technologies. Empirically we focus on the Swedish case and analyze three climate policy regimes, out of which two represent different national goal formulations and thus compliance strategies. The results show that the social choice between power generation technologies in Sweden will be significantly influenced by the choice of climate policy regime. Most notably, if Sweden would abandon its present national target for carbon dioxide emissions and instead make full use of the country's participation in international emissions trading, natural gas-fired power would replace onshore wind power as the power generation source with the lowest social cost.

Place, publisher, year, edition, pages
2008. Vol. 36, no 11, p. 4154-4158
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-14780DOI: 10.1016/j.enpol.2008.08.008ISI: 000261020100016Scopus ID: 2-s2.0-53249090062Local ID: e3423c50-8ed5-11dd-b0bd-000ea68e967bOAI: oai:DiVA.org:ltu-14780DiVA, id: diva2:987753
Note
Validerad; 2008; 20080930 (frepet)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved

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Söderholm, PatrikPettersson, Fredrik

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