Interactions Between Climate Policies in the Power Sector - Green Energy and Efficiency: An Economic Perspective - page 272

Table 1 (continued)

Scenarios Impact

Study Country CO 2

target

RES-E
target

Instrument CO 2

price
€ /
tCO 2

Retail power prices (%
change with reference to
no policies * or to carbon
price only**)

Policy costs

Linares et al.
[ 21 ]

Spain 30 % - TEP 22.05 34.91%*(Wholesale) The combination of instruments features

higher costs, although it shows some syner-
gies: the simultaneous achievement of the
emissions reductions and high penetration of
renewable energies only increases costs by
3 % with respect to the emissions trading
system only.

30 % 17.5 % TEP+RPS 14.71 32.04 %*(Wholesale)

Fischer and
Newell [ 11 ]

US 4.8 % - TEP - − 2.2 %* The most efcient policy is the emissions

price, leading to the least cost in terms of
surplus. The emissions performance standard
is the second most cost-effective instrument,
reaching costs 41 % higher than the emis-
sions price. The other policies can be
described as offering different combinations
of these incentives, which have different
consequences for the distribution and the
over all size of the burden of meeting an
emissions reduction target.

4.8 % - Emission

Price

$7 5 %*

4.8 % - RPS - − 0.9 %*

(continued)