The electricity sector is one of the largest carbon emitters in Europe. To control these emissions, economic instruments such as emissions trading, taxes, and various voluntary agreements are increasingly being considered. However, electricity systems in Europe are diverse, appropriate policies may differ widely, and similar instruments may have different effects in different countries. This study the economic instruments likely to be developed, on both national and EU levels, their potential impact, and the potential interactions of different instruments within and between countries, including issues relating to international electricity and emissions trading.
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