Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
8100774 | Journal of Cleaner Production | 2016 | 13 Pages |
Abstract
Carbon capture and storage (CCS) is an attractive option to help reduce China's carbon emission. This paper analyzes the impacts of subsidy for electricity generation on CCS retrofitting investment and carbon abatement in China's coal power plants, considering the coaction of carbon market and subsidy policy. To this end, this paper builds up a real option model, considering carbon prices, electricity prices and coal prices' uncertainties. For decision of CCS investment, we consider two important aspects: whether to invest and when to invest, i.e. CCS investment's potential and timing. Some major findings include: 1) The impacts of subsidy on CCS investment and carbon abatement are affected by carbon market conditions: initial carbon price can determine the magnitude of subsidy's impacts, while carbon prices' uncertainty level can determine subsidy's marginal impacts. 2) Subsidy from $0.01 to $0.05/kWh can raise CCS investment potential by 9.66%-39.18%, shorten CCS investment period by 0.39-1.95 years and bring carbon abatement potential of 0.10-1.89Â GtCO2, considering different carbon market conditions. 3) With the benchmark carbon market and affordable subsidies, triggered CCS investments in coal power plants have an economical-efficient carbon abatement potential up to 20% of China's carbon emission in 2030.
Keywords
Related Topics
Physical Sciences and Engineering
Energy
Renewable Energy, Sustainability and the Environment
Authors
Huadong Chen, Can Wang, Minhua Ye,