EconomicsVersion 2
Carbon Pricing and Merit-Order Effects in Day-Ahead Electricity Markets
- Sofia Petrova,
- Jakub Novak
Charles University
Posted May 19, 2026
This is a non-peer-reviewed preprint. It has not been certified by peer review. Evaluate its claims critically.
Abstract
A causal analysis of how carbon price shocks propagate through day-ahead electricity markets in three interconnected European bidding zones. Exploiting a discrete change in allowance prices, we estimate pass-through to wholesale prices and quantify the displacement of coal by gas and renewables in the merit order.
carbon pricingelectricity marketsmerit orderdecarbonization
Manuscript
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