Price effects of CO2-quotas on the Nordic electricity market
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- Master Thesis 
The aim of the thesis is to examine the electricity market and the introduction of CO2-quotas. In order to perform this study, the text is divided into five main sections. The introductory section presents several assumptions that make it possible to model the quotas as an imposed unit tax on the producers of electricity. Section two consists of a thorough competition analysis. Section three examines the distinctive price formation in the market for generation of electricity, while section four presents empirical data from the early stages of the quota regime. This part of the thesis also uses the basis formed earlier in order to predict the price effects of the introduction of CO2-allowances. The concluding remarks summarize the findings, which show that the price for consumers will increase.