The aim of this work is to characterize the main determinants influencing the development of electricity prices. Beginnings are dedicated to the description of regulated elements of electricity bill and their development over the last period. The second part deals with power electricity and its development in the spot and futures market. The paper describes the emergence of energy prices on the market and the main determinants affecting the supply and demand curves, such as the price of emission allowances, increasing production from renewable energy and the price of energy raw materials. Part of the work is also analysis of the impact of market coupling on the market price of electricity daily market. The conclusion is devoted to seasonal fluctuations in electricity prices representing the time series.

This thesis analyzes the implementation of the EU emission trading scheme (EU ETS) in comparison with the electronization of public administration, the level of development of information society, and the approach to the regulation of greenhouse gas emissions in selected EU member states (the Czech republic, Slovakia, France, Italy, the United Kingdom). The main subject of this thesis is, whether the process of the implementation of EU ETS fits into the general conceptions of e-government in selected countries, or whether it stands individually. The EU system of emission trading is an european e-government service, and that is also the reason why its implementation depends significantly on the maturity of use of information and communication technologies within public administration in selected countries. This thesis is divided into three main sections, the first chapter contains the comparative analysis of the level of development of the electronization of public administration in selected countries, the second chapter contains the analysis of available information about the implementation of EU ETS in these states, and the third chapter compares the results from both previous sections, and contains the answers to the main questions mentioned above.

Växthuseffekten är idag ett välkänt fenomen. För inte så länge sedan skrev 195 länder på klimatavtalet i Paris, ett avtal som slår fast att länderna tillsammans ska arbeta mot målet att hålla den globala uppvärmningen under 2 grader Celsius. Redan före ingåendet av detta avtal fanns åtgärder som syftade till att minska den globala uppvärmningen. Införandet av utsläppsmarknaden är en sådan åtgärd. Denna marknad bygger på att man med hjälp av ekonomiska incitament påverkar företag att minska sina utsläpp. Om företag inte kan minska sina utsläpp står de inför stora kostnader. Hela idén med utsläppsmarknader hotas dock av det faktum att det inte finns någon vägledning kring hur företag ska redovisa utsläppsrätter i de finansiella rapporterna. Som ett resultat av avsaknaden av vägledning på området är det upp till företag själva att avgöra hur och om de ska redovisa utsläppsrätter. En ytterligare konsekvens av detta är det väldigt många företag som inte redovisar utsläppsrätter överhuvudtaget. Även bland de företag som valt att redovisa utsläppsrätter finns det en stor variation.I denna studie undersöks variationen ur ett annat perspektiv. Syftet med denna studie är att söka förklara varför företag tillämpar olika redovisningsmetoder gällande redovisning av utsläppsrätter utifrån ett anglosaxiskt och kontinentalt perspektiv. Den genomförda metoden i studien är en kvantitativ innehållsanalys med kvalitativa inslag som behandlade 32 anglosaxiska respektive 32 kontinentala börsnoterade företags årsredovisningar. Samtliga företag är deltagare på en utsläppsmarknad och följer IFRS.Studien visar att det finns skillnader mellan anglosaxiska och kontinentala företags redovisning av utsläppsrätter. Studien visar även att dessa kan förklaras utifrån de egenskaper som är typiska för respektive redovisningstradition. Anglosaxiska företag redovisar överlag mycket mindre om utsläppsrätter än vad kontinentala företag gör. Detta faktum kan troligen förklaras genom den starka position som revisionsprofessionen har i den anglosaxiska redovisningstraditionen. Bland de anglosaxiska företag som väl valt att upplysa visar studien att deras redovisningsval styrs av syftet med deras finansiella rapporter. Vidare visar studien att kontinentala företag använder varierande värderingsmetoder vilket kan kopplas till skattelagstiftningens påverkan på redovisningspraxis i dessa länder. En annan skillnad är att kontinentala företag i högre grad erkänner hela förpliktelsen i balansräkningen vilket har sin förklaring i att de anses redovisa mer försiktigt.Studien belyser hur företags redovisningsval påverkas av redovisningstraditionerna i ett land och bekräftar att de fortfarande existerar. Dessa slutsatser kan bidra med ett nytt perspektiv i det pågående arbetet att ta fram vägledning gällande redovisning av utsläppsrätter. Vi anser att vägledning är nödvändig för att utsläppsmarknaden ska leva upp till sitt syfte, vilket den inte gör idag. / Today, the effect of greenhouse gases is a well-known phenomenon. Not so long ago 195 countries signed the Paris agreement, a document which states that the countries will work together to achieve the goal of keeping the global warming below 2 degrees Celsius. Even before the entrance of this agreement measures were taken to reduce global warming. The introduction of an emission trading scheme is one such measure. The scheme tries to create economic incentives for companies to reduce their emissions of greenhouse gases. If no efforts are made in order to reduce their emissions, the companies will face extensive costs. However, the whole idea of an emission trading scheme is threatened by the fact that there is no guidance on how companies should report emission allowances in their financial reports. As a result of the lack of guidance companies will have to decide on their own if and how they should account for emission allowances. A further consequence of this is that many companies do not account for emission allowances at all. It is also a big variation among the companies that have chosen to account for emission allowances.In this study we investigate the variety through a different perspective. The purpose of this study is to explain why companies use different accounting methods when they account for emission allowances from an Anglo-Saxon and Continental view. The applied method of this study is a quantitative content analysis with qualitative elements on 32 Anglo-Saxon and 32 Continental companies´ annual reports. All of the companies are participants on an emission trading scheme and comply with IFRS.The study shows that there is a difference between Anglo-Saxon and Continental accounting for emission allowances. The study also shows that this difference can be explained by the characteristics that are typical for each accounting tradition. In general, Anglo-Saxon companies disclose less about their emission allowances than the Continental companies do. This fact can probably be explained by the audit profession’s strong position in the Anglo-Saxon accounting tradition. The study also shows that the Anglo-Saxon companies that have chosen to disclose are guided by the objective of their financial statements. Furthermore, the study shows that Continental companies use several different valuation methods, which can be explained by the strong connection between tax and accounting practice in the Continental countries. Another difference is that Continental companies more frequently gross the liability in the balance sheet, which is explained by the fact that Continental companies are considered more prudent. This study highlights how corporate accounting choices are influenced by the countries’ accounting traditions and confirm that these traditions still exist. These conclusions can provide a new perspective in the current effort to develop guidance regarding the accounting of emission allowances. We believe that guidance is necessary if the emission trading scheme shall fulfil its purpose, which it currently does not.

The interaction between competition and environmental policy is quite complex, particularly before state aids, whose control level reflects the emerging opportunity cost between both policies. In order to illustrate the potential efficiency losses or the imbalances on level playing field of competition, this article analyzes the legal, economic and political dimensions of the European Union Emissions Trading System (EU ETS) free allocation of allowances mechanism for the power generation sector. / La interacción entre la política de competencia y la medio ambientales bastante compleja, especialmente en el caso de las ayudas estatales, cuyo nivel de control refleja el coste de oportunidad emergente entre ambas. Con el fin de ilustrar las potenciales pérdidas de eficiencia o los desequilibrios en la equidad de condiciones de competencia, este artículo analiza las dimensiones legal, económica y política del mecanismo de asignación gratuita de permisos de emisión del Régimen Comunitario de Comercio de Derechos de Emisión (RCCDE) de la Unión Europea para el sector de la generación eléctrica.

The thesis focuses on comparison of emission trading of the European Union (European Union Emission Trading Scheme) which trades with carbon dioxide allowances and emission trading of the United States of America (Acid Rain Program) which trade with sulphur dioxide allowances. Despite of using same mechanisms and principles, these systems brought diverse results -- mostly because of different implementation of key parameters. The thesis which concerns with both of these systems is trying to find the major reasons of unsuccessful implementation of the European Union trading and the most important reasons leading to successful performance of the U.S. program.

The thesis is targeted to a valuation of CEZ Group. The Czech based utility CEZ Group ensures regular production and supply of electricity and other essential products for everyday needs of the population in CEE region. The purpose of presented valuation is to determine whether the shares of these publicly traded company are correctly valued and that there exists any upside or downside potential. The final valuation is primarily determined by using two well-known valuation approaches -- discounted cash flow (based on operating profit analysis) and peer group analysis (based on market analysis). In order to provide a full range of understanding, the thesis consists of eight main parts focused on company profile, strategic analysis, financial analysis, value drivers, financial plan, minorities and final valuation. Further, all these parts are split up into few sections. Conclusion of the thesis includes an investment recommendation.

This thesis describes possibilities of electricity trading. The thesis deals with subjects at the electricity market, defines their competences, obligations and relationships among these subjects. Trading places and their advantages and disadvantages are also described in the thesis. The thesis shows composition of the electricity price and informs about its partial components. Types of ancillary services are spoken and there is also comparison between selling wholesale electricity and providing ancillary services. An influence of primary fuels and emission allowances on the electricity price is included at the end of the thesis.

Im Jahr 2005 wurde als Reaktion auf die Unterzeichnung des Kyoto-Protokolls und der damit verbundenen Verpflichtung zur Reduktion von Treibhausgasemissionen der europäische Emissionshandel eingeführt. Versuche der Standardsetter für IFRS und US GAAP zu einer einheitlichen Bilanzierungsregel für Emissionsrechte scheiterten. Seitdem stehen den beteiligten Unternehmen speziell bei Ansatz und Bewertung von Emissionsrechten sowie der Verbindlichkeit für verursachte Emissionen Wahlrechte zur Verfügung. Da unterschiedliche Bilanzierungsansätze zu verschiedenen Resultaten beispielsweise in der Gewinn- und Verlustrechnung führen können, schränkt die Regelungslücke die Vergleichbarkeit zwischen Unternehmen mit unterschiedlichen Bilanzierungsansätzen ein. Dabei wird zudem deutlich, wie wichtig die Offenlegung des gewählten Bilanzierungsansatzes ist. Diese Arbeit beschreibt mit Hilfe einer ausführlichen Literaturrecherche den Diskurs in der Forschung und fasst die theoretisch möglichen Ansätze zusammen. Dem schließt sich eine Analyse aller im STOXX Europe 600 gelisteten Unternehmen an. Untersucht wird, inwieweit die Unternehmen am Emissionshandel beteiligt sind, welchen Ansatz zur Bilanzierung von Emissionsrechten sie wählen und in welcher Vollständigkeit sie den gewählten Ansatz im Geschäftsbericht offenlegen. Insgesamt 70 Unternehmen im STOXX Europe 600 geben eine Beteiligung am europäischen Emissionshandel an, 68 davon erhalten Emissionsrechte kostenfrei von einer staatlichen Stelle zugeteilt. Davon wiederum können 31 Unternehmen sicher einem Bilanzierungsansatz zugeordnet werden; bei den übrigen Unternehmen werden nicht alle relevanten Bilanzierungsentscheidungen offengelegt. Die große Mehrheit dieser 31 Unternehmen wendet den Netto-Ansatz an, bei welchem die zugeteilten Emissionsrechte zu Anschaffungskosten (üblicherweise Null) angesetzt werden. Nur zwei Unternehmen bilanzieren Emissionsrechte nach der 2005 zurückgenommenen, aber weiterhin gültigen Interpretation IFRIC 3. Insgesamt gibt es bezüglich der Bilanzierung von Emissionsrechten in europäischen Unternehmen in Theorie und Praxis Unterschiede, welche die Vergleichbarkeit einschränken. Dies wird durch die häufig unvollständige Offenlegung der Bilanzierungsentscheidung verstärkt. Diese Kritikpunkte sollten aus Sicht der Standardsetter IASB und FASB ausreichend Anlass geben, eine einheitliche Regelung zur Bilanzierung von Emissionsrechten zu entwickeln.

Thesis Abstract: Chapter I: Regional burden sharing of GHG mitigation policies – A Canadian perspective. The distribution of the burden of cost arising from the reduction of greenhouse gas (GHG) emissions is a contentious issue in policy discussions; more so among regional jurisdictions in the federalist countries with decentralized authorities over environmental regulations. In this setting, often the policy discussions are focused on the distribution of regional emission reduction targets that, in turn, entails negotiations over the distribution of the scarcity rents and the regional transfers of wealth. The allocation of regional emission entitlements is thus a key factor that could hinder the political feasibility of a national GHG mitigation policy. In this paper, we build a multi-region computable general equilibrium (CGE) model of the Canadian economy to assess the implications of different burden sharing rules governing the national GHG abatement policy with a cap-and-trade system of emission permits. In addition to assessing the impacts of traditional regional emissions allocation rules that involve intra-regional transfers of wealth, we consider a particular emission allocation that avoids such transfers, which may be a more palatable option given the context of likely fierce negotiations over the issue. Our results indicate to differing outcomes depending on the allocation policy in use. The CGE framework is also able to shed light on the transmission mechanisms that drive the results underlying the policy options. Chapter II: Endogenous technological change and emission allowances. Given the imminent threat of global warming due to GHG emissions, a number of emission mitigation policies have been proposed in the literature. However, they generally suffer from the classical equity-efficiency trade-off. High costs from equity concerns often render environmental policies politically unattractive and thus hard to implement. Recent advancement in the climate policy modeling literature that incorporates endogenous technological change (ETC) into the framework can potentially bring new insights into this debate. Using an inter-temporal, multi-sector CGE approach with ETC incorporated into the framework, this paper builds a model that focuses on the equity-efficiency debate for the policymakers. Canada is chosen as the country of investigation for this purpose. The paper provides a new welfare ranking of four permit allocation policies that address the equity-efficiency trade-off. In a second-best setting with pre-existing distortions, output-based allocation (OBA) of emission permits is compared to three other policy options: (i) an emissions trading system with grandfathered allocation (GFA), (ii) an auction permit trading system where permit revenue is recycled to lower payroll taxes (RPT), and (iii) a hybrid of OBA and R&D subsidy (O-R&D). We find that adapting OBA, as well as O-R&D, is welfare improving over GFA. The implicit output subsidy, entailed in the OBA policy, mitigates against the rising cost effect in the GFA policy. This is reinforced through added investment incentive in R&D when ETC in incorporated into the framework. With O-R&D, since the R&D subsidy corrects for market imperfections in the knowledge accumulation process, the effect is further bolstered, culminating into mitigation of uneven distributional outcome for energy-intensive industries as a whole. Contrary to previous results, we also find that, in terms of the welfare metric, OBA unequivocally improves the distributional outcome across sectors as compared to the RPT policy. Inclusion of ETC also unequivocally generates a higher welfare ranking for all permit policy schemes. Chapter III: Emission permit banking and induced technological change. This paper attempts to undertake an exploratory research by integrating two themes in the emission mitigation policy literature, which include: the inter-temporal emission permit banking and borrowing and the role of induced technological change in emission mitigation. Using a simple optimal control approach, we construct a unified framework that evaluates the optimal path of emissions and the optimal trajectory of permit price when both inter-temporal banking and borrowing of permits and the effects of induced technological change (ITC) are present. We find that ITC leads to a declining emission trajectory over time. The effect of ITC on the optimal permit price path, however, is ambiguous and critically depends on the extent of marginal cost saving that emanates from emission-saving technological innovation.

Thesis Abstract: Chapter I: Regional burden sharing of GHG mitigation policies – A Canadian perspective. The distribution of the burden of cost arising from the reduction of greenhouse gas (GHG) emissions is a contentious issue in policy discussions; more so among regional jurisdictions in the federalist countries with decentralized authorities over environmental regulations. In this setting, often the policy discussions are focused on the distribution of regional emission reduction targets that, in turn, entails negotiations over the distribution of the scarcity rents and the regional transfers of wealth. The allocation of regional emission entitlements is thus a key factor that could hinder the political feasibility of a national GHG mitigation policy. In this paper, we build a multi-region computable general equilibrium (CGE) model of the Canadian economy to assess the implications of different burden sharing rules governing the national GHG abatement policy with a cap-and-trade system of emission permits. In addition to assessing the impacts of traditional regional emissions allocation rules that involve intra-regional transfers of wealth, we consider a particular emission allocation that avoids such transfers, which may be a more palatable option given the context of likely fierce negotiations over the issue. Our results indicate to differing outcomes depending on the allocation policy in use. The CGE framework is also able to shed light on the transmission mechanisms that drive the results underlying the policy options. Chapter II: Endogenous technological change and emission allowances. Given the imminent threat of global warming due to GHG emissions, a number of emission mitigation policies have been proposed in the literature. However, they generally suffer from the classical equity-efficiency trade-off. High costs from equity concerns often render environmental policies politically unattractive and thus hard to implement. Recent advancement in the climate policy modeling literature that incorporates endogenous technological change (ETC) into the framework can potentially bring new insights into this debate. Using an inter-temporal, multi-sector CGE approach with ETC incorporated into the framework, this paper builds a model that focuses on the equity-efficiency debate for the policymakers. Canada is chosen as the country of investigation for this purpose. The paper provides a new welfare ranking of four permit allocation policies that address the equity-efficiency trade-off. In a second-best setting with pre-existing distortions, output-based allocation (OBA) of emission permits is compared to three other policy options: (i) an emissions trading system with grandfathered allocation (GFA), (ii) an auction permit trading system where permit revenue is recycled to lower payroll taxes (RPT), and (iii) a hybrid of OBA and R&D subsidy (O-R&D). We find that adapting OBA, as well as O-R&D, is welfare improving over GFA. The implicit output subsidy, entailed in the OBA policy, mitigates against the rising cost effect in the GFA policy. This is reinforced through added investment incentive in R&D when ETC in incorporated into the framework. With O-R&D, since the R&D subsidy corrects for market imperfections in the knowledge accumulation process, the effect is further bolstered, culminating into mitigation of uneven distributional outcome for energy-intensive industries as a whole. Contrary to previous results, we also find that, in terms of the welfare metric, OBA unequivocally improves the distributional outcome across sectors as compared to the RPT policy. Inclusion of ETC also unequivocally generates a higher welfare ranking for all permit policy schemes. Chapter III: Emission permit banking and induced technological change. This paper attempts to undertake an exploratory research by integrating two themes in the emission mitigation policy literature, which include: the inter-temporal emission permit banking and borrowing and the role of induced technological change in emission mitigation. Using a simple optimal control approach, we construct a unified framework that evaluates the optimal path of emissions and the optimal trajectory of permit price when both inter-temporal banking and borrowing of permits and the effects of induced technological change (ITC) are present. We find that ITC leads to a declining emission trajectory over time. The effect of ITC on the optimal permit price path, however, is ambiguous and critically depends on the extent of marginal cost saving that emanates from emission-saving technological innovation.