Environmental Policies in an Electricity Sector: Test on the French Electricity Sector

Corinne Chaton Marie-Laure Guillerminet

Feed-in Tariffs promoting renewable energy sources and quotas of CO2 emissions have been implemented jointly in France to reduce CO2 emissions. We develop on GAMS a supply-demand model applied to the electricity sector. Demand is uncertain and is characterized by load curves. We find that if both policies reduce emissions, feed-in tariffs involve a substantial extra-cost without significant gain for sure in terms of emissions.