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Environmental regulations and interfuel substitution in the power sector: a generalized Leontief model
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0003-2264-7043
2000 (English)In: Energy and Environment, ISSN 0958-305X, E-ISSN 2048-4070, Vol. 11, no 1, p. 1-23Article in journal (Refereed) Published
Abstract [en]

This paper analyzes short-run interfuel substitution between fossil fuels in West European power generation, and the impact of SO2 regulations on fossil fuel choices. These problems are studied within a short-run Generalized Leontief cost function. The empirical results indicate that price-induced interfuel substitution in existing power plants is substantial in West Europe, especially that between oil and gas. This is consistent with the notion that short-run fuel substitution primarily occurs in multi-fired plants, by switching load between different single-fired plants, and/or by converting power plants to be able to burn alternate fuels as well. With regard to the impact of the SO2 regulations, the empirical investigation provides few conclusive answers. In general it is hard to separate the individual effects of the SO2 regulations on the one hand, and other fuel affecting policies on the other. Still, during the last 20 years the aggregate effect of public energy policies seems to have been coal and gas promoting and oil discouraging.

Place, publisher, year, edition, pages
2000. Vol. 11, no 1, p. 1-23
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-6843Local ID: 525ed2d0-d170-11db-a0b9-000ea68e967bOAI: oai:DiVA.org:ltu-6843DiVA: diva2:979729
Note
Validerad; 2000; 20061003 (evan)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2017-11-24Bibliographically approved

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