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AATOLA, PIIA (2) answer(s).
 
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ID:   094936


Climate change and electricity consumption: witnessing increasing or decreasing use and costs? / Pilli-Sihvola, Karoliina; Aatola, Piia; Ollikainen, Markku; Tuomenvirta, Heikki   Journal Article
Ollikainen, Markku Journal Article
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Publication 2010.
Summary/Abstract Climate change affects the need for heating and cooling. This paper examines the impact of gradually warming climate on the need for heating and cooling with an econometric multivariate regression model for five countries in Europe along the south-north line. The predicted changes in electricity demand are then used to analyze how climate change impacts the cost of electricity use, including carbon costs. Our main findings are, that in Central and North Europe, the decrease in heating due to climate warming, dominates and thus costs will decrease for both users of electricity and in carbon markets. In Southern Europe climate warming, and the consequential increase in cooling and electricity demand, overcomes the decreased need for heating. Therefore costs also increase. The main contributors are the role of electricity in heating and cooling, and the climatic zone.
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2
ID:   125636


Impact of the carbon price on the integrating European electric / Aatola, Piia; Ollikainen, Markku; Toppinen, Anne   Journal Article
Ollikainen, Markku Journal Article
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Publication 2013.
Summary/Abstract We study the impact of the carbon price on the integrating electricity market in the EU. Our theoretical framework suggests that the price of carbon has a positive but uneven impact on electricity prices depending on the marginal production plant. The carbon price may increase price differences in the short run. We apply time series analysis on daily forward data from 2003 to 2011 and investigate whether we can find empirical evidence for our analytical findings. Our results support the hypotheses that integration in electricity prices has increased over time and that the carbon price has a positive but uneven impact on the integration of prices.
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