Liberalization and environmental policy in the European electricity market

Recent proposals for liberalization of the European Union electricity market are examined in terms of environmental issues. Liberalization will likely result in more regulation to ensure that the market performs efficiently and equitably and to enforce conditions under which suppliers operate. The competitive position of cogeneration and renewable energy technologies will improve. European Union liberalization policy will need to be bolstered by incentives, regulations, and access to information in order to promote conservation and the deployment of environmentally benign energy technologies.