Auteur :
KIRAT
Djamel,
AHAMADA
Ibrahim
Année de Publication :
2009
Type : Etude
Thème : Energie et mines
Couverture :
France
In order to comply with their commitments under the Kyoto Protocol, France and Germany participate
to the European Union Emission Trading Scheme (EU ETS) which concerns predominantly electricity gen-
eration sectors. In this paper we seek to know if the EU ETS gives appropriate economic incentives for an
e¢ cient and strong system in line with Kyoto commitments. Because if so electricity producers in these coun-
tries should include the price of carbon in their costs functions. After identifying the di¤erent sub periods of
the EU ETS during its pilot phase (2005-2007), we model the prices of various electricity contracts and look
at their volatilities around their fundamentals while evaluating the correlation between the electricity prices
in the two countries. We .nd that electricity producers in both countries were constrained to include the
carbon price in their cost functions during the .rst two years of operation of the EU ETS. During this period,
German electricity producers were more constrained than their French counterparts and the inclusion of the
carbon price in the cost function of electricity generation has been so much more stable in Germany than in
France. Furthermore, the European market for emission allowances has increased the market power of the
historical French electricity producer and has greatly contributed to the partial alignment of the wholesale
price of electricity in France with those of Germany.