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Fuel switching as an option for medium-term emission reduction - A model-based analysis of reactions to price signals and regulatory action in German industry

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  • Rehfeldt, Matthias
  • Fleiter, Tobias
  • Herbst, Andrea
  • Eidelloth, Stefan

Abstract

The German federal government has set a target for German industry to reduce its GHG emissions by 49%–51% by 2030 compared to 1990. Fuel switching to electricity and biomass is a potential measure to meet this target. In this article, we simulate the contribution of fuel switching by applying economic incentives and regulatory measures. The policy instruments of a CO2 price and technology-specific subsidies are applied with varying intensity. In addition, we simulate accelerated stock replacement and a ban on new fossil-based steam generation systems. Results show that combining fuel switching and energy efficiency could achieve emission reductions of 50% by 2030 compared to 1990 only combined with considerable economic pressure (up to 300 €/tCO2) and financial support for electricity-based process heating.

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  • Rehfeldt, Matthias & Fleiter, Tobias & Herbst, Andrea & Eidelloth, Stefan, 2020. "Fuel switching as an option for medium-term emission reduction - A model-based analysis of reactions to price signals and regulatory action in German industry," Energy Policy, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:enepol:v:147:y:2020:i:c:s0301421520306042
    DOI: 10.1016/j.enpol.2020.111889
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