A1165
Title: Marginal emission factors in electricity markets: The role of renewable energy sources and electricity trade
Authors: Luigi Grossi - University of Parma (Italy) [presenting]
Filippo Beltrami - EURAC Research Institute for Renewable Energy (Italy)
Mario Liebensteiner - Friedrich Alexander University (Germany)
Abstract: The purpose is to measure how cross-border commercial exchanges of electricity influence carbon emissions in both the generating and the receiving country. This central question encompasses the study of how electricity trading between countries affects the overall carbon emissions of the involved countries. The aim is to build on these insights by providing updated estimates of MEFs in Germany, taking into account physical power trade with neighboring countries. In particular, the impact that the export of electricity generated in Germany has on domestic CO2 emissions and on emissions in France, Germany's main trading partner, is estimated. It is demonstrated that the corresponding parameter can be considered an MEF coefficient. This analysis will be conducted through a two-stage econometric model. In the first stage, the generation mix (including nuclear and renewable energy sources) in neighboring countries is examined to determine how it affects Germany's net electricity exports. The results of this first stage are then included in the second stage to address the endogeneity of exports' effect on carbon emissions. This approach allows the consistent estimation of the impact of net electricity exports (adjusted for generation sources) on Germany's CO2 emissions, considering demand, supply, and prices of CO2 and natural gas.
