[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/qld/uqeemg/4-2012.html
   My bibliography  Save this paper

An Assessment of the Impact of the Introduction of Carbon Price Signals on Prices, Production Trends, Carbon Emissions and Power Flows in the NEM for the period 2007-2009

Author

Listed:
  • Phil Wild

    (Department of Economics, University of Queensland)

  • William Paul Bell

    (Department of Economics, University of Queensland)

  • John Foster

    (Department of Economics, University of Queensland)

Abstract
There has been significant debate about the potential role that supply side and demand side policy initiatives might exert upon key participants within the National Electricity Market (NEM) in attempts to curb growth in carbon emissions. From the perspective of supply side policy initiatives, most debate and analysis has been focused upon assessing the impact that a ‘Cap-&-Trade’ carbon trading scheme, and more recently, a carbon tax scheme, might have on changing marginal cost relativities in order to promote increased dispatch and investment in less carbon emissions intensive types of generation technologies including gas-fired generation and renewable generation technologies. However, with any forthcoming move towards a carbon constrained economy, there are many uncertainties over policy settings that are required to achieve the environmental goal of reduced greenhouse gas emissions and about the resulting impact on the National Electricity Industry more generally. A complete understanding of the impacts on the electricity industry of carbon abatement policies requires that new renewable technology proposals be incorporated in a model containing many of the salient features of the national wholesale electricity market. These features include intra-regional and inter-state trade, realistic transmission network pathways, competitive dispatch of all generation technologies with price determination based upon marginal cost and branch congestion characteristics. It is only under such circumstances that the link between carbon emission reductions and generator based fuel switching can be fully explored and the consequences for carbon emission reductions and changes in wholesale and retail electricity prices can be determined.

Suggested Citation

  • Phil Wild & William Paul Bell & John Foster, 2012. "An Assessment of the Impact of the Introduction of Carbon Price Signals on Prices, Production Trends, Carbon Emissions and Power Flows in the NEM for the period 2007-2009," Energy Economics and Management Group Working Papers 4-2012, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uqeemg:4-2012
    as

    Download full text from publisher

    File URL: http://www.uq.edu.au/eemg/docs/workingpapers/17.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Junjie Sun & Leigh Tesfatsion, 2007. "Dynamic Testing of Wholesale Power Market Designs: An Open-Source Agent-Based Framework," Computational Economics, Springer;Society for Computational Economics, vol. 30(3), pages 291-327, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Phil Wild & William Paul Bell & John Foster, 2012. "Impact of Carbon Prices: State Production Trends, Inter-state Trade and Carbon Emission Reduction Outcomes in the NEM over the period 2007- 2009," Energy Economics and Management Group Working Papers 6-2012, School of Economics, University of Queensland, Australia.
    2. Phil Wild & William Paul Bell & John Foster, 2014. "Impact of Operational Wind Generation in the Australian National Electricity Market over 2007-2012," Energy Economics and Management Group Working Papers 1-2014, School of Economics, University of Queensland, Australia.
    3. Fatemeh Nazifi, 2016. "The pass-through rates of carbon costs on to electricity prices within the Australian National Electricity Market," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(1), pages 41-62, January.
    4. Ming, Wei & Nazifi, Fatemeh & Trück, Stefan, 2024. "Emission intensities in the Australian National Electricity Market – An econometric analysis," Energy Economics, Elsevier, vol. 129(C).
    5. William Paul Bell & Phil Wild & John Foster, 2014. "Collinsville solar thermal project: Energy economics and Dispatch forecasting - Draft repor," Energy Economics and Management Group Working Papers 6-2014, School of Economics, University of Queensland, Australia.
    6. Phillip Wild, William Paul Bell, and John Foster, 2015. "Impact of Carbon Prices on Wholesale Electricity Prices and Carbon Pass-Through Rates in the Australian National Electricity Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    7. Foster, John & Bell, William Paul & Wild, Phillip & Sharma, Deepak & Sandu, Suwin & Froome, Craig & Wagner, Liam & Misra, Suchi & Bagia, Ravindra, 2013. "Analysis of institutional adaptability to redress electricity infrastructure vulnerability due to climate change," MPRA Paper 47787, University Library of Munich, Germany.
    8. Fatemeh Nazifi, 2016. "The pass-through rates of carbon costs on to electricity prices within the Australian National Electricity Market," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(1), pages 41-62, January.
    9. Phil Wild & William Paul Bell & John Foster, 2012. "The Impact of Carbon Pricing on Wholesale Electricity Prices, Carbon Pass-Through Rates and Retail Electricity Tariffs in Australia," Energy Economics and Management Group Working Papers 5-2012, School of Economics, University of Queensland, Australia.
    10. Bell, William Paul & Wild, Phillip & Foster, John, 2014. "Collinsville solar thermal project: Energy economics and dispatch forecasting - Final report," MPRA Paper 59648, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Balint, T. & Lamperti, F. & Mandel, A. & Napoletano, M. & Roventini, A. & Sapio, A., 2017. "Complexity and the Economics of Climate Change: A Survey and a Look Forward," Ecological Economics, Elsevier, vol. 138(C), pages 252-265.
    2. Jean-Luc Gaffard & Mauro Napoletano, 2012. "Agent-based models and economic policy," Post-Print hal-03461120, HAL.
    3. LeBaron Blake & Winker Peter, 2008. "Introduction to the Special Issue on Agent-Based Models for Economic Policy Advice," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(2-3), pages 141-148, April.
    4. Krishnamurthy, Dheepak & Li, Wanning & Tesfatsion, Leigh, 2016. "An 8-Zone Test System Based on ISO New England Data: Development and Application," ISU General Staff Papers 201601010800001449, Iowa State University, Department of Economics.
    5. Somani, Abhishek, 2012. "Financial risk management and market performance in restructured electric power markets: Theoretical and agent-based test bed studies," ISU General Staff Papers 201201010800003479, Iowa State University, Department of Economics.
    6. Vijayanarasimha Hindupur Pakka & Richard Mark Rylatt, 2016. "Design and Analysis of Electrical Distribution Networks and Balancing Markets in the UK: A New Framework with Applications," Energies, MDPI, vol. 9(2), pages 1-20, February.
    7. Mauro Napoletano, 2018. "A Short Walk on the Wild Side: Agent-Based Models and their Implications for Macroeconomic Analysis," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 257-281.
    8. Thompson, James R. & Frezza, Damon & Necioglu, Burhan & Cohen, Michael L. & Hoffman, Kenneth & Rosfjord, Kristine, 2019. "Interdependent Critical Infrastructure Model (ICIM): An agent-based model of power and water infrastructure," International Journal of Critical Infrastructure Protection, Elsevier, vol. 24(C), pages 144-165.
    9. Gaivoronskaia, E. & Tsyplakov, A., 2018. "Using a Modified Erev-Roth Algorithm in an Agent-Based Electricity Market Model," Journal of the New Economic Association, New Economic Association, vol. 39(3), pages 55-83.
    10. repec:spo:wpmain:info:hdl:2441/1nlv566svi86iqtetenms15tc4 is not listed on IDEAS
    11. Chandra, Yanto & Wilkinson, Ian F., 2017. "Firm internationalization from a network-centric complex-systems perspective," Journal of World Business, Elsevier, vol. 52(5), pages 691-701.
    12. G. Fagiolo & A. Roventini, 2009. "On the Scientific Status of Economic Policy: A Tale of Alternative Paradigms," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 6.
    13. Bell, William Paul & Wild, Phillip & Foster, John & Hewson, Michael, 2017. "Revitalising the wind power induced merit order effect to reduce wholesale and retail electricity prices in Australia," Energy Economics, Elsevier, vol. 67(C), pages 224-241.
    14. Rubin, Ofir D. & Babcock, Bruce A., 2011. "A novel approach for modeling deregulated electricity markets," Energy Policy, Elsevier, vol. 39(5), pages 2711-2721, May.
    15. repec:spo:wpmain:info:hdl:2441/5qr7f0k4sk8rbq4do5u6v70rm0 is not listed on IDEAS
    16. Rahimiyan, Morteza & Rajabi Mashhadi, Habib, 2010. "Evaluating the efficiency of divestiture policy in promoting competitiveness using an analytical method and agent-based computational economics," Energy Policy, Elsevier, vol. 38(3), pages 1588-1595, March.
    17. repec:hal:spmain:info:hdl:2441/53r60a8s3kup1vc9l564igg8g is not listed on IDEAS
    18. Dina A. Zaki & Mohamed Hamdy, 2022. "A Review of Electricity Tariffs and Enabling Solutions for Optimal Energy Management," Energies, MDPI, vol. 15(22), pages 1-17, November.
    19. repec:hal:spmain:info:hdl:2441/2qdhj5485p93jrnf08s1meeap9 is not listed on IDEAS
    20. Phil Wild & William Paul Bell & John Foster, 2012. "Impact of Carbon Prices: State Production Trends, Inter-state Trade and Carbon Emission Reduction Outcomes in the NEM over the period 2007- 2009," Energy Economics and Management Group Working Papers 6-2012, School of Economics, University of Queensland, Australia.
    21. Alexopoulos, Thomas A., 2017. "The growing importance of natural gas as a predictor for retail electricity prices in US," Energy, Elsevier, vol. 137(C), pages 219-233.
    22. Rianne Duinen & Tatiana Filatova & Wander Jager & Anne Veen, 2016. "Going beyond perfect rationality: drought risk, economic choices and the influence of social networks," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 57(2), pages 335-369, November.
    23. Albert Banal-Estañol & Augusto Rupérez-Micola, 2010. "Are agent-based simulations robust? The wholesale electricity trading case," Economics Working Papers 1214, Department of Economics and Business, Universitat Pompeu Fabra.
    24. Poursalimi Jaghargh, Mohammad Javad & Mashhadi, Habib Rajabi, 2021. "An analytical approach to estimate structural and behavioral impact of renewable energy power plants on LMP," Renewable Energy, Elsevier, vol. 163(C), pages 1012-1022.

    More about this item

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qld:uqeemg:4-2012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SOE IT (email available below). General contact details of provider: https://edirc.repec.org/data/eemuqau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.