The impact of low carbon generation on the future price of electricity

Bellingham, Richard (2008) The impact of low carbon generation on the future price of electricity. Fraser of Allander Economic Commentary, 32 (1). pp. 63-69. ISSN 2046-5378

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    Abstract

    There are relatively few who would argue that tackling climate change, and therefore reducing carbon emissions, should not be a priority for society and the energy sector. But significant increases in energy prices are a necessary consequence of that policy. Using published sources this paper estimates that by 2020 UK and EU regulatory mechanisms designed to promote lower carbon energy will increase average household electricity prices by between 23% and 42%, and median industrial electricity prices by between 30% and 60%.