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This paper discusses whether a new paradigm is necessary for independent economic regulation of electricity land closely associated natural gas) systems. We begin by summarizing the nature of the traditional model of electricity reform and the place of economic regulation within it. Next we outline the drivers for changing the current model of electricity regulation, namely, the maturity of the existing model, the reality of changing circumstances, and the coming of age of climate change concern. We go on to discuss the premises on which a new model of regulation should be based. These are: remembering the successes of the current system of regulation; a new focus on processes not just outcomes; a recognition of the economics of climate change; and the appropriate management of uncertainty. We then highlight the key elements of a new model for regulation: new processes of regulation; new models of competition and the issues raised by focus on climate change. The paper draws heavily on the experience of the UK, but has direct implications for the rest of the European Union countries and for other countries whose regulatory systems mirror them. [ABSTRACT FROM AUTHOR]

The EU climate and energy policy landscape is characterized by a combination of instruments to achieve the EU 2020 and 2030 targets. In this paper, some of the most relevant interactions between RES-E support and a wide array of other climate and energy policies including the EU ETS, the Energy Taxation Directive and the Effort Sharing Directive in the European Union are assessed. A qualitative methodology is applied considering different assessment criteria such as effectiveness and efficiency of RES-E support and support costs but also distribution of costs between different stakeholder groups. Our analysis shows that, despite a common perception that interactions lead to conflicts, this is not really the case when the discussion is broadened and considers different assessment criteria. While adding one instrument or policy to another worsens one criterion, it usually improves another. Furthermore, the results of the interactions are not only specific to the policy, but also depend on the choice of instruments and design elements. [ABSTRACT FROM AUTHOR]

The article discusses the ways in which the precautionary principle has influenced environmental policy development pertaining to climate change. The author is of the opinion that the precautionary principle has done little to combat climate change. The importance of social construction theory and critical realism to an understanding of the principle is emphasized, as the risks of global climate change have direct social consequences. Emphasis is given to the European Union's (EU) handling of the precautionary principle.

This study highlights significant discrepancies between CO2 market design and the actual operation of CO2 markets. Our findings are based upon an empirical investigation undertaken in the context of the European Emissions Trading Scheme between January 2009 and May 2010. CO2 markets are examined from a practice-based perspective in which actors are engaged in exchange, representational and normalizing practices. Discrepancies between the actual and intended CO2 market practices are explained using the concepts of framing, overflowing and regulatory capture. We argue that the design of the European Emissions Trading Scheme has been influenced in such a way that it does not actually challenge market participants to reduce their CO2 emissions. In this way, the study challenges the near universal reliance upon CO2 markets as the primary policy mechanism for mitigating climate change. [ABSTRACT FROM AUTHOR]

Presents a summary of options on climate change policies among European Union countries. Key issues of interest; Analysis of pertinent topics and relevant issues; Implications on the energy industries and environmental protection.