Award date: 17 June 2022. Supervisor: Professor Jos Marie R. Delbeke, European University InstituteThe increasing carbon price and the unstable energy supply have precipitated concern about affordable energy prices and energy security. How do different national institutional arrangements, specifically state-led and market-led electricity market design, mediate the impact of the CO2 emissions trading on electricity price? This paper adopts qualitative comparative analysis in investigating the interrelationship between EU and China’s electricity markets, carbon markets, and how electricity markets reflect input costs (of fuels and carbon costs). And find out that there are important differences in designing and operating these markets, reflecting different economic arrangements. Despite the differences, whether in China or the EU, governments will have to involve themselves more in energy markets to ensure that the energy transition meets not only its environmental goals but also energy security and industrial goals – while ensuring the transition is affordable for consumers. The ultimate goal of fuel switching to renewables would intensify this situation
