SYSTEM PERSPECTIVE

2.8

Reflection: What is the correct price for carbon?

In the last step we asked you to choose a carbon price and a nuclear risk premium for our example energy system to see what the optimal resulting supply structure will be.

Which prices for carbon and nuclear did you choose? Did you observe a relation between your choice and the resulting supply mix?

We encourage you to make a note of your observations.

Exercise: Find the allocative optimum in your first market model
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Your market model: the mathematics
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