2008/27 FLORENCE SCHOOL OF REGULATION
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1 EUI Working Papers RSCAS 2008/27 FLORENCE SCHOOL OF REGULATION Water Misallocation and Environmental Externalities in Electricity Generation Etienne Billette de Villemeur and Annalisa Vinella
2 EUROPEAN UNIVERSITY INSTITUTE, FLORENCE ROBERT SCHUMAN CENTRE FOR ADVANCED STUDIES FLORENCE SCHOOL OF REGULATION Water Misallocation and Environmental Externalities in Electricity Generation ETIENNE BILLETTE DE VILLEMEUR AND ANNALISA VINELLA EUI Working Paper RSCAS 2008/27
3 This text may be downloaded only for personal research purposes. Additional reproduction for other purposes, whether in hard copies or electronically, requires the consent of the author(s), editor(s). Requests should be addressed directly to the author(s). If cited or quoted, reference should be made to the full name of the author(s), editor(s), the title, the working paper, or other series, the year and the publisher. The author(s)/editor(s) should inform the Robert Schuman Centre for Advanced Studies at the EUI if the paper will be published elsewhere and also take responsibility for any consequential obligation(s). ISSN Etienne Billette de Villemeur and Annalisa Vinella Printed in Italy European University Institute Badia Fiesolana I San Domenico di Fiesole (FI) Italy
4 Robert Schuman Centre for Advanced Studies The Robert Schuman Centre for Advanced Studies (RSCAS), directed by Stefano Bartolini since September 2006, is home to a large post-doctoral programme. Created in 1992, it aims to develop inter-disciplinary and comparative research and to promote work on the major issues facing the process of integration and European society. The Centre hosts major research programmes and projects, and a range of working groups and ad hoc initiatives. The research agenda is organised around a set of core themes and is continuously evolving, reflecting the changing agenda of European integration and the expanding membership of the European Union. Details of this and the other research of the Centre can be found on: Research publications take the form of Working Papers, Policy Papers, Distinguished Lectures and books. Most of these are also available on the RSCAS website: The EUI and the RSCAS are not responsible for the opinion expressed by the author(s). Florence School of Regulation The Florence School of Regulation (FSR) is a partnership between the RSCAS at the EUI and the Council of the European Energy Regulators (CEER), and it works closely with the European Commission. The Florence School of Regulation is sponsored by leading European energy companies. The objectives of the FSR are to promote informed discussion of key issues; to provide state-of-the-art training for practitioners; and to produce analytical studies in the field of regulation. It is a European forum dedicated to economic regulation. While its primary focus is on energy regulation, particularly in the electricity and gas markets, it is extending its coverage to other areas of regulation. This series of working papers aims at disseminating the work of scholars and practitioners on current regulatory issues. For further information Florence School of Regulation Robert Schuman Centre for Advanced Studies European University Institute Via delle Fontanelle, 19 I San Domenico di Fiesole (FI) Fax: fsr@eui.eu
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8 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
9 Etienne Billette de Villemeur and Annalisa Vinella 2 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
10 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 3
11 Etienne Billette de Villemeur and Annalisa Vinella 4 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
12 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 5
13 Etienne Billette de Villemeur and Annalisa Vinella 6 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
14 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 7
15 Etienne Billette de Villemeur and Annalisa Vinella 8 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
16 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 9
17 Etienne Billette de Villemeur and Annalisa Vinella 10 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
18 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 11
19 Etienne Billette de Villemeur and Annalisa Vinella 12 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
20 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 13
21 Etienne Billette de Villemeur and Annalisa Vinella 14 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
22 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 15
23 Etienne Billette de Villemeur and Annalisa Vinella 16 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
24 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 17
25 Etienne Billette de Villemeur and Annalisa Vinella 18 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
26 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 19
27 Etienne Billette de Villemeur and Annalisa Vinella 20 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
28 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 21
29 Etienne Billette de Villemeur and Annalisa Vinella 22 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
30 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 23
31 Etienne Billette de Villemeur and Annalisa Vinella 24 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
32 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 25
33 Etienne Billette de Villemeur and Annalisa Vinella 26 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
34 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 27
35 Etienne Billette de Villemeur and Annalisa Vinella 28 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
36 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 29
37 Etienne Billette de Villemeur and Annalisa Vinella 30 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
38 Water Misallocation and Environmental Externalities in Electricity Generation EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella 31
39 Etienne Billette de Villemeur and Annalisa Vinella 32 EUI-WP RSCAS 2008/ Etienne Billette de Villemeur and Annalisa Vinella
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