The Future Impact of Carbon Tax on Electricity Flow between Great Britain and Its Neighbors until 2030

This paper investigates the future role of cross-border electricity flow between Great Britain (GB) and its neighbors until 2030, considering high deployment of renewable energy sources (e.g., wind, solar, and biomass), enhanced interconnection capacity, and a partly electrified heating sector. It was assumed that two cross-border interconnectors links will connect GB’s power system to its neighbors: (1) a one-way interconnector (IC1) that imports electricity to GB, and (2) a two-way one (IC2) between France and GB. The IC2 was allowed to transfer electricity from a cheaper power system to a more expensive one. The results show that at a fixed CO2 price, a change in power imported via IC1 will affect the power dispatch of the CO2 emitting power plants and biomass-fired power plants, and electricity trade via IC1 and IC2. At IC1 importing of £60/MWh, by raising the CO2 price from 60 to £70/ton, the share of CCGT power plants will reduce by 75%, and the power imported via IC1 link will face 19-times growth. With a constant IC1 import price, raising the CO2 tax will reduce the total quantity of electricity being exported to France via IC2. Moreover, increasing the CO2 tax will increase the emissions cost of gas and coal-fired generators, and the power required to meet the demand will be imported via IC1. With the IC1 electricity price set to £20/MWh and the CO2 tax set to £50/ton, there may be 595 periods out of 17,520 in which GB will be used as an electricity trade corridor. GB’s total CO2 emissions should drop as the CO2 tax increases.

The Influence of Variable CO2 Emission Tax Rate on Flexible Chemical Process Synthesis

The emission of greenhouse gasses is a major environmental problem, and efforts are being made worldwide in various ways to encourage producers to reduce their emissions. There is a need to incorporate environmental measures into process design and synthesis, as pollution prevention is a higher priority than waste management, and in this way, more sustainable solutions can also be achieved. One possibility is to introduce a CO2 tax, the value of which is very uncertain in the future. This paper demonstrates how the CO2 tax affects the optimal results of synthesizing chemical processes using mixed-integer nonlinear programming (MINLP). It was found that the tax increase promotes the use of better-quality raw materials and more efficient process units. Energy consumption and emissions are reduced and economic performance deteriorates. A multi-period, two-stage stochastic approach with recourse is suitable to incorporate the uncertainty of the CO2 tax in the MINLP process synthesis and gives better results than a simpler deterministic approach. In the case of the heat exchanger network synthesis, the costs obtained with the stochastic approach were 5% lower, and the emissions 7% lower than with a deterministic approach.

The possible impact of the introduction of the greenhouse gas emissions charge on the electricity cost

Subject. The article focuses on the strategy of low carbon development of the economy and power engineering in Russia, which implies the introduction of CO2 emission charges. The adoption of CO2 tax can seriously influence the future mix of power plants and spur the cost of electricity. The expected adverse effect is great for the national and energy security. However, to correctly assess the strategic threats, there should be thorough and multidimensional research. Objectives. We quantify the possible effect of the introduction and growth in the CO2 tax on the cost of electricity across regions of the European part of Russia. Methods. We applied the systems analysis and the original optimization model, which accounts for the ambiguity of inputs and the correlation in the development of the regional power supply systems. Results. Based on our experimental computations, we proved that the methodological toolkit is effective for the above task. We outlined how the structure of power plants launched and the cost of electricity can possibly change in some federal districts if the CO2 tax increases from USD 10 to 40 per tonne of CO2. Conclusions and Relevance. In the above circumstances in the European part of Russia, including the Urals, each percent of an increase in the CO2 charge will expectedly lower the greenhouse gas emissions correspondingly, while the cost of electricity rises by 0.4–0.5 percent. Moreover, the mix of power plants and the cost of electricity will be getting less and less different across regions.

Early-Phase Offshore Hydrocarbon Field Planning Considering Environmental Factors and Using Integrated Asset Modeling

This work discusses methods to quantify environmental indicators of development alternatives during the early design phase of offshore fields and how to include them in the selection process. The goal is to develop a decision-support method to: 1) evaluate field development alternatives of reduced environmental impact and 2) dealing with conflicting indicators such as economic value and environmental performance. A value chain model of a synthetic field located in the Norwegian Continental Shelf (NCS) was created using an integrated asset modeling tool. The model computes the net present value (NPV) of the project and the amount of CO2 emissions based on the hydrocarbon production profile and the field energy consumption. Several cases and field development power supply alternatives such as open-cycle gas turbine (OCGT), combined-cycle gas turbine (CCGT), power from shore and offshore wind farms are analyzed. It has been assumed that the gas turbine generates most of the CO2 and that the amounts of CO2 produced is a function of the field power consumption. The effect of the CO2 tax is included and studied. Results show that there are development alternatives that provide fair economic value while having low CO2 emissions. For the cases studied, the solutions with gas turbines have higher economic value than the solutions with power from shore and offshore wind farms, but emit large amounts of CO2. For solutions using gas turbine, a combined-cycle has less CO2 emission intensity (kgCO2/boe) than open-cycle, however, the energy intensity (kWh/boe) depended mainly on the amount of gas recycled and is highest for 75%. These indicators could allow field planners to evaluate and compare different field development concepts. Breakeven values of CO2 tax were determined for which the economic value of development with the gas turbine is equal to that of development with power from shore or offshore wind farms.

ASSESSMENT OF ECONOMIC EFFECTS FROM DIFFERENT CARBON TAXATION SCENARIOS IN UKRAINE

Computable general equilibrium model for Ukraine was used to assess the economic impact of CO2 tax rates changes under different use of revenues from this tax in Ukraine. The initial assumptions and structure of the general equilibrium model for Ukraine were described. The simulation results show that the best option for using CO2 tax revenues is to invest in industry to improve energy efficiency. Using revenues to compensate households for raising prices for goods and services is only a short-term option, as is redistributing revenues to the government. As for the price of CO2 (tax rates), it is shown that at a tax rate of more than 75 euros per ton of CO2 equivalent, Ukraine's economy is experiencing a significant decline. The best thing for Ukraine is to gradually raise the tax rate to the European level in 2040-2050.

Analysis on complementarity between a CO2 tax and an emissions trading system to reduce industrial emissions in Chile

This study aims to analyze the behavior of Chilean industrial sources when a CO2 tax, an emissions trading system with a total reduction target of 30%, or both instruments simultaneously are applied. For the above, an optimization model is built that is then calibrated with firm -level data obtained from the Annual National Industrial Survey (ENIA). Specifically, the model assumes that industrial sources have the option of maintaining their original emissions, replacing their current fuels with less polluting ones to pay fewer taxes and/or trade of emissions in a carbon market. The results show that to reduce emissions by at least 30% a tax close to US $17.5/tCO2 could be applied with a total cost of US $106 million, but it would be better to apply an emissions trading system with a similar price because the total cost would be US $21.3 million. If both economic instruments are applied together, the total cost of reduction is higher than when the instruments are implemented independently. Thus, it is concluded that Chile could move from a CO2 tax to an emissions trading system in order to reduce the costs of its environmental regulation.