Inderscience Publishers

Implementing environmental commitments in liberalised energy markets

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This paper examines the question of whether market reform and environmental commitments are in conflict. A review of the key developments in both fields leads to the conclusion that there is no conflict, provided governments address environmental issues in an appropriate, market compatible way. There is, however, a potential conflict between energy market reform and certain policy instruments that have been used in the past to meet environmental objectives. The challenge for governments is to develop new tools and an institutional framework adapted to the new circumstances.

Keywords: climate change, energy, market reform

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