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Competition, efficiency and emission reduction : A regulator's view
Abstract
There is increasing international concern over the environmental consequences of gaseous emissions. This paper examines the interaction between competition, efficiency and emission reductions in the recently privatized UK electricity industry. The competitive structure of the industry, its regulation, and the mechanisms of pollution control are described. The various strategies and reactions of incumbent firms and new entrants are also described as are their implications for the electricity market. In conclusion it is noted that the present control regime is relatively inflexible and that more market oriented approaches might better exploit the dynamics of the competitive market.
This paper analyses the effect on the environment of electricity purchase from independent power producers (IPPs) in the case of Thailand. The environmental implication is evaluated in terms of the net change in emission of air pollutants with electricity purchase from IPPs by a utility. The main finding of the study is that electricity purchase from a non-dispatchable IPP plant based on coal-fired generation would increase the net emissions compared with that without the purchase from IPPs. The study also shows that the lower plant factor of the IPP plant would also increase the emission of air pollutants. Furthermore, with non-dispatchable IPP plants, the total emission of air pollutants would increase, whereas with dispatchable IPP plants the total emission would decrease with the level of electricity purchases.
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