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

See all articles by Bo Andersson

Bo Andersson

Stockholm School of Economics - Department of Economics

Erik Haden

Stockholm School of Economics

Date Written: February 1996

Abstract

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

Andersson, Bo and Haden, Erik, Power Production and the Price of Electricity: An Analysis of a Phaseout of Swedish Nuclear Power (February 1996 ). Stockholm School of Economics WPS 105, Available at SSRN: https://ssrn.com/abstract=4080

Bo Andersson (Contact Author)

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
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S-113 83 Stockholm
Sweden
11-468-736-9212 (Phone)
11-468-313-207 (Fax)

Erik Haden

Stockholm School of Economics

P.O. Box 6501
Stockholm
SWEDEN

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