Search

Begin New Search
Proceed to Checkout

Search Results for All:
(Showing results 1 to 5 of 5)



Carbon Capture Retrofits and the Cost of Regulatory Uncertainty

Peter S. Reinelt and David W. Keith

Year: 2007
Volume: Volume 28
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol28-No4-5
View Abstract

Abstract:
Power generation firms confront impending replacement of an aging coal-fired fleet in a business environment characterized by volatile natural gas prices and uncertain carbon regulation. We develop a stochastic dynamic programming model of firm investment decisions that minimizes the expected present value of future power generation costs under uncertain natural gas and carbon prices. We explore the implications of regulatory uncertainty on generation technology choice and the optimal timing of investment, and assess the implications of these choices for regulators. We find that interaction of regulatory uncertainty with irreversible investment always raises the social cost of carbon abatement. Further, the social cost of regulatory uncertainty is strongly dependent on the relative competitiveness of IGCC plants, for which the cost of later carbon capture retrofits is comparatively small, and on the firm�s ability to use investments in natural gas generation as a transitional strategy to manage carbon regulation uncertainty. Without highly competitive IGCC or low gas prices, regulatory uncertainty can increase the expected social cost of reducing emissions by 40 to 60%.



Low Stabilization Scenarios and Implications for Major World Regions from an Integrated Assessment Perspective

Detlef P. van Vuuren , Morna Isaac, Michel G.J. den Elzen, Elke Stehfest and Jasper van Vliet

Year: 2010
Volume: Volume 31
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol31-NoSI-7
View Abstract

Abstract:
In order to limit global mean temperature increase to less than 2�C, long-term greenhouse gas concentrations must remain low. This paper discusses how such low concentrations can be reached, based on results from the IMAGE modelling framework (including TIMER and FAIR). We show that the attainability of low greenhouse gas concentration targets, in particular 450 and 400 ppm CO2 equivalent critically depends on model assumptions, such as bio-energy potentials. Under standard model assumptions, these targets can be reached, although the lowest requires the use of bio-energy in combination with carbon-capture-and-storage. Regions are affected differently by ambitious climate policies in terms of energy and land use, although stringent emission reductions will be required in all regions. Resulting co-benefits of climate policy (such as energy security and air pollution) are also different across world regions.



Carbon Capture and Storage Technologies in the European Power Market

Rolf Golombek, Mads Greaker, Sverre A.C. Kittelsen, Ole Røgeberg, and Finn Roar Aune

Year: 2011
Volume: Volume 32
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol32-No3-8
View Abstract

Abstract:
We examine the potential of Carbon Capture and Storage (CCS) technologies in the European electricity markets, assessing whether CCS technologies will reduce carbon emissions substantially in the absence of investment subsidies, and how the availability of CCS technologies may affect electricity prices and the amount of renewable electricity. To this end we augment a multi-market equilibrium model of the European energy markets with CCS electricity technologies. The CCS technologies are characterized by costs and technical efficiencies synthesized from a number of recent CCS reviews. Our simulations indicate that with realistic values for carbon prices, new CCS coal power plants become profitable, totally replacing non-CCS coal power investments and to a large extent replacing new wind power. New CCS gas power also becomes profitable, but does not replace non-CCS gas power investment fully. Substantially lower costs, through subsidies on technological development or deployment, would be necessary to make CCS modification of existing coal and gas power plants profitable for private investors. doi: 10.5547/ISSN0195-6574-EJ-Vol32-No3-8



A Least-Cost optimisation Model of Co2 Capture Applied to Major uK Power Plants Within The Eu-ETS Framework

A.G. Kemp and A.S. Kasim

Year: 2008
Volume: Volume 29
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol29-NoSI-7
View Abstract

Abstract:
Concerns about the cost of CO2 capture and sequestration, and the effective�ness of carbon abatement policies loom large in discussions on climate change mitiga�tion. Several writers address the issue from various perspectives. This paper attempts to add relative realism to discussions on CO2 capture costs, and, the deployment of carbon capture technology in the UK by using publicly available company data on the long term capacity expansion and CO2 capture investment programmes of selected power plants in the UK. With an estimated �8 billion plan to install a generation ca�pacity of 11 GW and capture capability of 44 MtCO2/year, it is imperative to optimise this huge potential investment. A least-cost optimisation model was formulated and solved with the LP algorithm available in GAMS. The model was then applied to ad�dress a number of issues, including the choice of an optimal carbon abatement policy within the EU-ETS framework. The major findings of the study include (a) the long term total cost curve of CO2 capture has three phases � rising, plateau, rising; (b) alternative capture technologies do not have permanent relative cost advantages or disadvantages; (c) Government incentives encourage carbon capture and the avoid�ance of emission penalty charges; and (d) the goals of EU-ETS are more effectively realised with deeper cuts in the EUA ratios than merely hiking the emission penalty, as proposed in EU-ETS Phase II.



Promoting CCS in Europe: A Case for Green Strategic Trade Policy?

Finn Roar Aune, Simen Gaure, Rolf Golombek, Mads Greaker, Sverre A.C. Kittelsen, and Lin Ma

Year: 2022
Volume: Volume 43
Number: Number 6
DOI: 10.5547/01956574.43.6.faun
View Abstract

Abstract:
According to IEA (2018), there is a huge gap between the first-best social optimal utilization of Carbon Capture and Storage (CCS) technologies to lower global CO2 emissions and the current, negligible diffusion of this technology. This calls for a financial support mechanism for CCS. We study to what extent promotion of CCS in Europe should be through subsidizing development and production of CCS technologies—an upstream subsidy—or by subsidising the purchasers of CCS technologies—a downstream subsidy. This question is examined theoretically in a stylized model and numerically by using a new approach that integrates strategic trade policy with an economic model of the European energy markets. The theory model suggests that upstream subsidies should clearly be preferred, and this is confirmed by the numerical simulations. For the European power market, the numerical simulations suggest that subsidies to CCS coal power should exceed subsidies to CCS gas power.





Begin New Search
Proceed to Checkout

 

© 2025 International Association for Energy Economics | Privacy Policy | Return Policy