Abstract
This chaptersummarisesboth marketand non-market-basedpolicies andtoolsavailable forencouragingdecarbonisationof the electricity sector.Market-based policiesinclude carbon pricing, through a carbon tax on electricity generation or a cap-and-trade program on emissions, and second-best tradable standards, which include emissions intensity standards, clean energy standards, and renewable portfolio standards.Popular non-market, technology-specific policymechanismsdiscussed include targeting specific technologies through subsidies, or discouraging the use of dirtier resources, such as coal, through a mandated phase-out. Policy options for encouraging energy efficiency in the power sector to reduce emissions are also explored.Policies that price carbon are more economically efficient than other, particularly non-market policies but can be politically challenging.Since multiple policies are often used simultaneously, interactions between these various market and non-marketpoliciesare discussed. Examples are drawn from experiences in several countries, including parts of Europe, the US, Asia, and South America.
Original language | English |
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Title of host publication | Handbook on Electricity Markets |
Editors | Jean-Michel Glachant, Paul J. Joskow, Michael G. Pollitt |
Publisher | Edward Elgar Publishing Ltd. |
Chapter | 14 |
Pages | 383-407 |
Number of pages | 25 |
ISBN (Electronic) | 9781788979955 |
ISBN (Print) | 9781788979948, 9781035312412 |
DOIs | |
Publication status | Published - 2021 |
Bibliographical note
Publisher Copyright:© Jean-Michel Glachant, Paul L. Joskow and Michael G. Pollitt 2021.