Mixing it Up: Power Sector Energy and Regional and Regulatory Climate Policies in the Presence of a Carbon Tax

2013 ◽  
Author(s):  
Dallas Burtraw ◽  
Karen L. Palmer
Keyword(s):  
Carbon Tax ◽  
Power Sector ◽  
Climate Policies ◽  
Regulatory Climate

scholarly journals Power sector asset stranding effects of climate policies

2019 ◽  
Vol 14 (4) ◽  
pp. 99-124 ◽  
Author(s):  
Deger Saygin ◽  
Jasper Rigter ◽  
Ben Caldecott ◽  
Nicholas Wagner ◽  
Dolf Gielen
Keyword(s):  
Power Sector ◽  
Climate Policies

scholarly journals The technical impacts of the carbon tax in China

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Shuyang Chen
Keyword(s):  
Computable General Equilibrium ◽  
Energy Cost ◽  
Production Efficiency ◽  
Energy Use ◽  
Carbon Tax ◽  
Evaluation Framework ◽  
Cost Share ◽  
Climate Policies ◽  
Use Efficiency ◽  
Published Paper

AbstractDespite the significant impacts of technology on the socioeconomic effects of climate policies, many previous researchers neglected the induced technical impacts and thus resulted in biased evaluations of climate policies. Hence, it is important that the induced technology should be endogenized in the policy evaluation framework. The purpose of this paper is the quantification of the technical impacts of the Chinese carbon tax using a Computable General Equilibrium (CGE) model. The technical impacts are denoted by the induced technological change (ITC), which is a function of the energy-use efficiency (EUE), energy-production efficiency (EPE), and nonenergy-production efficiency (ENE). The carbon tax will increase the energy cost share because of the internalisation of the abatement costs. This paper empirically shows that the carbon tax will decrease the energy cost share and production efficiency but increase the energy use and nonenergy production efficiency. Under the carbon tax, the ITC will decrease the energy use and production efficiency but increase the nonenergy production efficiency. The ITC will increase the RGDP, decrease the household welfare, and increase the average social cost of carbon (ASCC). This finding implies that the ITC of the carbon tax is biased towards the technical progress of nonenergy sectors; the emission abatement will become costlier under the ITC impacts. Although the quantification method of the technical impacts was from an existing published paper, the CGE analysis of the ITC impacts of the carbon tax in China is original in this paper.

scholarly journals The Technical Impacts of the Carbon Tax in China

2021 ◽  
Author(s):  
Shuyang Chen
Keyword(s):  
Energy Cost ◽  
Production Efficiency ◽  
Energy Use ◽  
Carbon Tax ◽  
Technological Development ◽  
Evaluation Framework ◽  
Baseline Scenario ◽  
Cost Share ◽  
Household Level ◽  
Climate Policies

Abstract Despite the significant impacts of technology on the socioeconomic effects of climate policies, many previous researchers neglected the induced technical impacts and thus resulted in biased evaluations of climate policies. Hence, it is important that the induced technology should be endogenized in the policy evaluation framework. In this paper, I attempt to use a Computable General Equilibrium (CGE) model to quantify the technical impacts of the Chinese carbon tax. The technical impacts are denoted by the induced technological change (ITC), which is a function of the energy-use efficiency (EUE), energy-production efficiency (EPE), and nonenergy-production efficiency (ENE). The carbon tax will increase the energy cost share because the of the internalisation of the abatement costs. This paper empirically shows that the carbon tax will decrease the energy cost share and production efficiency but increase the energy use and nonenergy production efficiency. Overall, the carbon tax will promote the technological development, compared to the baseline scenario. In addition to the policy effects of the tax, the ITC will decrease the energy use and production efficiency but increase the nonenergy production efficiency. The ITC will increase the RGDP, decrease the household welfare, and increase the average social cost of carbon (ASCC). To summarise, despite that the carbon tax will decrease the welfare at the country and household level, the ITC of the carbon tax will increase the welfare at the country level but decrease the welfare at the household level. Under the ITC impacts, the emission abatement will become costlier.

scholarly journals CO2 Mitigation in the Power Sector of Thailand: Analyses of Cleaner Supply-side Options Beyond the Paris Agreement

2019 ◽  
Vol 12 (1) ◽  
pp. 15-25 ◽  
Author(s):  
Lyheang Chhay ◽  
Bundit Limmeechokchai
Keyword(s):  
Carbon Dioxide ◽  
Renewable Energy ◽  
Carbon Dioxide Emissions ◽  
Electricity Generation ◽  
Carbon Capture ◽  
Fossil Fuels ◽  
Carbon Tax ◽  
Supply Side ◽  
Power Sector ◽  
Power Development

Background: The drastically increasing share of fossil fuel supply to meet the rapidly growing electricity demand resulting in increasing Carbon dioxide (CO2) emissions, is the major concern in Thailand. In 2015, fossil fuels used in electricity generation in Thailand accounted for around 85.3% of the total electricity generation. Aim: The aim of the study is to analyze carbon dioxide mitigation options under the cleaner supply-side option beyond the Intended Nationally Determined Contribution (INDC) of Thailand. Methods: In this study, the Long-range Energy Planning (LEAP) model is used to analyze the share of electricity generation and CO2 mitigation from four main different scenarios, namely Business-as-Usual (BAU), Renewable Energy (RE), Carbon Capture Storage (CCS), and Carbon Tax (CT) scenarios during 2015 to 2050. The BAU scenario is constructed following the power development targets of the Power Development Plan in 2015. Results: The results illustrate that in the BAU scenario, electricity generation and carbon dioxide emissions from the power sector will increase by 57.7% and 37.3%, respectively in 2050 as compared to 2015. The imposition of carbon tax of $20/tCO2 from 2020 and an increase to $500/t CO2 by 2050 will have a high potential to reduce CO2 emissions from the power sector as compared with other scenarios. Conclusion: Results show that except for the RE scenarios considering the lower share of solar and biomass, all scenarios would help Thailand in achieving the target of INDC by 2030. Results provide that the share of imported electricity is higher with the imposition of carbon tax as compared to the scenarios with the promotion of renewable energy, CCS and EV technology.

Implications of Carbon Tax on Generation Expansion Plan & GHG Emission: A Case Study on Indian Power Sector

ENERGYO ◽  
2018 ◽  
Author(s):  
Gaurav Nanda ◽  
Sangeeta Yamgar ◽  
S.C. Srivastava ◽  
S.N. Singh ◽  
Praveen Gupta ◽  
...  
Keyword(s):  
Carbon Tax ◽  
Ghg Emission ◽  
Power Sector ◽  
Generation Expansion ◽  
Expansion Plan ◽  
Indian Power Sector

CARBON TAXES VERSUS CAP AND TRADE: A CRITICAL REVIEW

2013 ◽  
Vol 04 (03) ◽  
pp. 1350010 ◽  
Author(s):  
LAWRENCE H. GOULDER ◽  
ANDREW R. SCHEIN
Keyword(s):  
Critical Review ◽  
Carbon Tax ◽  
Price Volatility ◽  
Carbon Taxes ◽  
Cap And Trade ◽  
Price Ceiling ◽  
Climate Policies ◽  
The Face ◽  
Prior Literature ◽  
Price Floor

We examine the relative attractions of a carbon tax, a "pure" cap-and-trade system, and a "hybrid" option (a cap-and-trade system with a price ceiling and/or price floor). We show that the various options are equivalent along more dimensions than often are recognized. In addition, we bring out important dimensions along which the approaches have very different impacts, including some dimensions that have received little attention in prior literature. Although no option dominates the others, a key finding is that exogenous emissions pricing (whether through a carbon tax or through the hybrid option) has a number of important attractions over pure cap and trade. Beyond helping prevent price volatility and reducing expected policy errors in the face of uncertainties, exogenous pricing helps avoid problematic interactions with other climate policies and helps avoid potential wealth transfers to oil-exporting countries.

scholarly journals Growth impacts of Swiss steering-based climate policies

2019 ◽  
Vol 155 (1) ◽  
Author(s):  
Adriana Marcucci ◽  
Lin Zhang
Keyword(s):  
Computable General Equilibrium ◽  
Carbon Tax ◽  
Emission Trading ◽  
Policy Instrument ◽  
Economic Output ◽  
Climate Targets ◽  
Climate Policies ◽  
Effective Option ◽  
Relative Attractiveness ◽  
Induced Technical Change

Abstract This paper studies the growth impacts of realizing two long-term carbon targets in Switzerland (reducing CO2 emissions in 2050 by 72% and 80% relative to 1990 levels) with alternative steering-based climate policies that include a uniform tax on the whole economy and differentiated tax schemes. For this analysis, we use the Computable Induced Technical change and Energy (CITE) model, a computable general equilibrium (CGE) model with endogenous growth. We find that achieving the climate targets could lead to a slight decrease in utility and an increase in investments through the shift of labor from manufacturing to research. Higher investments coming from higher innovation could compensate the reduction in output due to the carbon policies, leading to relatively unaffected economic output. The economic structure adjusts following three drivers: energy intensity, substitutability from energy in the production of the intermediate varieties, and the relative attractiveness of research. Moreover, the results from the CITE model show that the economy-wide carbon tax is the most effective option when we consider the effects on utility. Differentiating the sectors regulated by the emission trading system (ETS) has relatively low impact while applying lower taxes on transport fuels results in lower utility driven by inefficiencies in the sectoral mitigation efforts. Finally, we find that the effects of increasing the stringency of the target (in terms of foregone utility) are independent from the policy instrument.

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