The link between power prices and carbon prices are not always consistent in international markets, and this collection of research from experts in the European Union explores the relationship between pass-through and the power market structure that may cause these discrepancies. Editor Gulli (economics, U. Bocconi, Italy) has gathered analyses on the interaction between environmental policies and regulated markets, and then employs case studies to show fellow economists and policymakers how the EU Emissions Trading System (EU ETS) affects these conditions through regulation of carbon pricing. These contributors address the controversies of this infrastructure by using a robust simulation model to explore the theoretical and empirical results on a country-by-country basis. Annotation ⓒ2009 Book News, Inc., Portland, OR (booknews.com)

1. Introductions PART I: OVERVIEW AND THEORETICAL ISSUES 2. The European Emissions Trading: Overview, Lessons and Perspectives 3. Modelling the Short-run Impact of Carbon Trading on the Electricity Sector 4. From Electricity Prices to Electricity Costs: Impact of Emissions Trading on Industry's Electricity Purchasing Strategies PART II: EMPIRICAL ANALYSES 5. Options to Address Concerns Regarding EU ETS Induced Increases in Power Prices and Generators Profits: the Case of Carbon Cost Pass-through in Germany and the Netherlands 6. A Vector Error Correction Model of the Interactions among Gas, Electricity and Carbon Prices: an Application to the Cases of Germany and United Kingdom 7. Impacts of the European Emission Trade System on Finnish Wholesale Electricity Prices 8. The impact of the EU ETS on Power Prices in Italy: the A"Load Duration Curve Approach 9. The Joint Impact of Carbon Emissions Trading and Tradable Green Certificates on the Evolution of Liberalized Electricity Markets: The Spanish Case Index