Caring competition

What are the theoretical consequences of restructuring electricity markets on emissions? Here, Benoît Sévi shows that changes in supply and consumption and restructuring for competition has environmental effects, and argues that strong public policies are needed to compensate for the new short-term horizon in which energy firms are evolving

The issue of deregulation has long been debated, and today, even if largely adopted, is still contested. Taking deregulation as an established fact, will this process lead to a better or a worse situation in terms of the environment? The answer is far from obvious: there are so many factors to take into account. Two major difficulties emerge. First, sufficient time series do not