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Author (up) Diaz, G.; Munoz, F.D.; Moreno, R. doi  openurl
  Title Equilibrium Analysis of a Tax on Carbon Emissions with Pass-through Restrictions and Side-payment Rules Type Journal Article
  Year 2020 Publication Energy Journal Abbreviated Journal Energy J.  
  Volume 41 Issue 2 Pages 93-122  
  Keywords Carbon tax; Equilibrium modeling; Market design  
  Abstract Chile was the first country in Latin America to impose a tax on carbon-emitting electricity generators. However, the current regulation does not allow firms to include emission charges as costs for the dispatch and pricing of electricity in real time. The regulation also includes side-payment rules to reduce the economic losses of some carbon-emitting generating units. In this paper we develop an equilibrium model with endogenous investments in generation capacity to quantify the long-run economic inefficiencies of an emissions policy with such features in a competitive setting. We benchmark this policy against a standard tax on carbon emissions and a cap-and-trade program. Our results indicate that a carbon tax with such features can, at best, yield some reductions in carbon emissions at a much higher cost than standard emission policies. These findings highlight the critical importance of promoting short-run efficiency by pricing carbon emissions in the spot market in order to incentivize efficient investments in generating capacity in the long run.  
  Address [Diaz, Gabriel; Moreno, Rodrigo] Univ Chile, Dept Ingn Elect, Tupper 2007, Santiago, Chile, Email: fdmunoz@uai.cl  
  Corporate Author Thesis  
  Publisher Int Assoc Energy Economics Place of Publication Editor  
  Language English Summary Language Original Title  
  Series Editor Series Title Abbreviated Series Title  
  Series Volume Series Issue Edition  
  ISSN 0195-6574 ISBN Medium  
  Area Expedition Conference  
  Notes WOS:000517755100005 Approved no  
  Call Number UAI @ eduardo.moreno @ Serial 1117  
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