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- ItemWhy the sustainable provision of low-carbon electricity needs hybrid markets(Oxford : Elsevier, 2022) Keppler, Jan Horst; Quemin, Simon; Saguan, MarceloDeep decarbonization of energy systems poses considerable challenges to electricity markets and there is a growing consensus that an energy-only design based on short-term marginal cost pricing cannot deliver adequate levels of investment and long-term coordination across actors and sectors. Based on the instructive example of the evolution of European electricity market designs, we discuss several shortcomings of energy-only markets and illustrate how ad-hoc policies that intend to address them have limitations of their own, notably a lack of systemwide coordination. Second, we describe how the sheer scale and nature of deep decarbonization targets requiring massive investment in capital-intensive low-carbon technologies exacerbate these issues. Ambitious emission reduction targets thus require an evolution of market design towards hybrid regimes. Hybrid markets separate long-term investment decisions from short-term operations through a balanced and differentiated use of competitive and regulatory design elements to coordinate and de-risk investment. Finally, a historical analysis of the evolution of different electricity market designs shows how hybrid markets constitute contemporary forms of long-run marginal cost pricing that are appropriate for meeting deep decarbonization targets with reduced uncertainty and hence lower private and social costs.
- ItemCorrigendum to “Changing seasonal temperature offers a window of opportunity for stricter climate policy” [Environ. Sci. Policy 140 (2023) 35–45, (S1462901122003501), (10.1016/j.envsci.2022.11.010)](Oxford : Elsevier, 2022) Pfeifer, Lena; Otto, Ilona M.[No abstract available]