Potential impact of emission trading schemes on the Australian National Electricity Market

Xun Zhou, Zhao Yang Dong, Ariel Liebman, Geoff James

Research output: Chapter in Book/Report/Conference proceedingConference PaperResearchpeer-review

10 Citations (Scopus)


Power industry worldwide has been identified as a major source of greenhouse gas emissions. Consequently, many countries have started the implementation of emission trading schemes aimed at reducing greenhouse gas emissions by power stations. The Australian government aims to implement an emission trading schemes from 2010/2011. This scheme will greatly change the market perspective of the Australian National Electricity Market (NEM). A thorough understanding of the potential impact of emission trading is essential for market participants as well as energy market policy makers. In this paper, a targeted study of the NEM is presented to illustrate the impact on generation companies of different design choices regarding the free allocation of permits aspect of the proposed emission trading scheme. A recommendation is proposed to best promote reduction of emissions while minimizing the adverse impact on the electricity system, particularly on the generation companies.

Original languageEnglish
Title of host publicationIEEE Power and Energy Society 2008 General Meeting
Subtitle of host publicationConversion and Delivery of Electrical Energy in the 21st Century, PES
PublisherIEEE, Institute of Electrical and Electronics Engineers
Number of pages8
ISBN (Print)9781424419067
Publication statusPublished - 2008
Externally publishedYes
EventIEEE Power and Energy Society General Meeting 2008 - Pittsburgh, United States of America
Duration: 20 Jul 200824 Jul 2008
https://ieeexplore.ieee.org/xpl/conhome/4584435/proceeding (Proceedings)


ConferenceIEEE Power and Energy Society General Meeting 2008
Abbreviated titlePES-GM 2008
Country/TerritoryUnited States of America
Internet address


  • Emission trading
  • Market simulation
  • Sustainable development

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