Power Production and the Price of Electricity: An Analysis of a Phaseout of Swedish Nuclear Power
Stockholm School of Economics WPS 105
Posted: 7 May 1998
Date Written: February 1996
In this paper the effects of a phaseout of Swedish nuclear power, combined with different CO2 emission goals, are studied. The vital relationship between the national electricity market and the regional markets for heating is modeled in detail in a dynamic partial equilibrium environment. It is shown that phasing out nuclear power while restricting future CO2 emissions to the 1990 level implies a significant increase in electricity prices and a substantial loss in welfare.
JEL Classification: Q48, Q38, L79
Suggested Citation: Suggested Citation