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| Volume 3, Number 3, September 2007, pp. 401-423 | |||||||
| M. Genoese, F. Sensfuss, D. Mö st, O. Rentz | |||||||
| Key words: | |||||||
| agent-based simulation, electricity markets, CO2 emission trading | |||||||
| Mathematices Subject Classification: 91B26 | |||||||
|
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| Volume 3, Number 3, September 2007, pp. 401-423 | |||||||
| M. Genoese, F. Sensfuss, D. Mö st, O. Rentz | |||||||
| Key words: | |||||||
| agent-based simulation, electricity markets, CO2 emission trading | |||||||
| Mathematices Subject Classification: 91B26 | |||||||
|
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| Abstract: | |||
| The introduction of the European Emission Trading System (EUETS) in the year 2005 has been characterised by increasing wholesale power prices across Europe. This price increase has led to a public discussion on the legitimacy of the integration of the price of the free of charge allocated CO2 emission allowances into market prices of electricity. In this paper, we analyse the integration of different proportions of the daily actual emission allowance price into the bidding process for power plants on the German spot market and the resulting effect on the electricity prices for the year 2005. The analysis is carried out by an agent-based simulation model. The results indicate that approximately 75-100\% of the CO2 allowance price is passed through to the electricity price. | |||
| Agent-based analysis of the impact of CO2 emission trading on spot market prices for electricity in Germany | ||