Passthrough of emission cost in electricity markets in Greece
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Keywords
Αγορά ηλεκτρικής ενέργειας ; Κόστος ; Εκπομπές αερίων ; Διοξείδιο του άνθρακα ; CO2 emissions ; Ρύπανση ; ΠεριβάλλονAbstract
The purpose of this dissertation is to conduct an empirical analysis on the cost pass - through of
emission of the Greek electricity market, this analysis shows the impact of the emissions cost raise
in the price of electricity in Greece, and how the policy of the EU interferes with that.
These calculations are very important in the business world because they can predict with
accuracy, the fluctuation of the production cost and the profit. This dissertation includes both a
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theoretical review and an empirical analysis on the subject, all references come from official sites
of the Greek Government and European Union, as well as high prestige academic and economic
sources.
Despite the fact that many researches have been conducted on the subject, none of them has
deepen enough on the real - life impact of these policies and changes in prices. There will be a
reference on the subject of the problems that these changes cause on the customers and citizens of
the state, as well as sensitive groups, such as people with disabilities, people who need life -
support machines etc.
There will be a reference on a theoretic level, on the fundamental elements of economics that
govern all of modern economic views and theories, and an analysis of the opportunity cost that lies
behind these factors. The data and the conclusions of this analysis has shown that, if not any
immediate measures are taken, the cost of electricity in Greece will rise highly, even at the first
months of 2019. The simulation conducted used as an example the upcoming law that stops the
standard CO2 price/kWh in the country and trading with a fluctuation clause that will depend on
the ETS price of CO2 allowances. The data and calculations examined under three scenarios, the
first one stated that in an event of a stricter environmental regulation, how the prices will be
affected, the second one does the opposite, that in case the environmental regulations that are now
in effect loosen, then how this will affect to the price of electricity. There is room for further
research on this sector, especially in countries that have low natural resources and are still using
old technology in order to generate electricity.