IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v237y2024ipds0960148124019451.html
   My bibliography  Save this article

Optimum carbon tax rate for emission targets of electricity generation system by life cycle techno-economic-environmental optimization model

Author

Listed:
  • Shahbazi, Ashkan
  • Avami, Akram
  • Moeini-Aghtaie, Moein
  • Tavassoti, Hamidreza

Abstract

Reduction of greenhouse gas emissions from the electricity sector is of special interest for decarbonization of energy systems. Optimum carbon tax as a powerful policy tool is here studied by integrated techno-economic-environmental life cycle analysis in a unit commitment problem. The present model is formulated as a bi-level optimization problem to reach the optimum carbon tax rates for different emission targets. The total life cycle CO2 emissions are estimated to be 20333.90 tons/hr in a real case study of Iran's electricity sector for the peak demand hour. The carbon tax rate for a 2 % and a 3 % emissions reduction is equal to 15.87 and 24.65 $/ton, respectively. In the business-as-usual scenario, higher carbon taxes will be required each year to meet the same emission target. However, developing the electricity sector with cleaner technologies and strategic plans may decrease the carbon tax rate. The extent of this reduction depends on the type of development program implemented in the green revolution scenario. Therefore, policy makers play a direct role in ensuring the sustainable development of the electricity sector. The present model provides a robust framework to analyze the real carbon tax rates for the whole life cycle of electricity generation dispatch.

Suggested Citation

  • Shahbazi, Ashkan & Avami, Akram & Moeini-Aghtaie, Moein & Tavassoti, Hamidreza, 2024. "Optimum carbon tax rate for emission targets of electricity generation system by life cycle techno-economic-environmental optimization model," Renewable Energy, Elsevier, vol. 237(PD).
    • Handle: RePEc:eee:renene:v:237:y:2024:i:pd:s0960148124019451
    DOI: 10.1016/j.renene.2024.121877
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148124019451
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2024.121877?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roy, S. & Lam, Y.F. & Hossain, M.U. & Chan, J.C.L., 2022. "Comprehensive evaluation of electricity generation and emission reduction potential in the power sector using renewable alternatives in Vietnam," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    2. Chen, Li & Wemhoff, Aaron P., 2021. "Predicting embodied carbon emissions from purchased electricity for United States counties," Applied Energy, Elsevier, vol. 292(C).
    3. Stavins, Robert N., 2008. "A Meaningful U.S. Cap-and-Trade System to Address Climate Change," Climate Change Modelling and Policy Working Papers 44469, Fondazione Eni Enrico Mattei (FEEM).
    4. Alizadeh, Sadegh & Rezazadeh, Ali Akbar & Avami, Akram, 2024. "A cutting-edge tool for sustainable environmental management through life cycle assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    5. Lawrence H. Goulder & Andrew R. Schein, 2013. "Carbon Taxes Versus Cap And Trade: A Critical Review," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(03), pages 1-28.
    6. Martelli, Emanuele & Freschini, Marco & Zatti, Matteo, 2020. "Optimization of renewable energy subsidy and carbon tax for multi energy systems using bilevel programming," Applied Energy, Elsevier, vol. 267(C).
    7. Alizadeh, Sadegh & Avami, Akram, 2021. "Development of a framework for the sustainability evaluation of renewable and fossil fuel power plants using integrated LCA-emergy analysis: A case study in Iran," Renewable Energy, Elsevier, vol. 179(C), pages 1548-1564.
    8. Iribarren, Diego & Martín-Gamboa, Mario & Navas-Anguita, Zaira & García-Gusano, Diego & Dufour, Javier, 2020. "Influence of climate change externalities on the sustainability-oriented prioritisation of prospective energy scenarios," Energy, Elsevier, vol. 196(C).
    9. Pereira, Andrés & Sauma, Enzo, 2020. "Power systems expansion planning with time-varying CO2 tax," Energy Policy, Elsevier, vol. 144(C).
    10. Papadis, Elisa & Tsatsaronis, George, 2020. "Challenges in the decarbonization of the energy sector," Energy, Elsevier, vol. 205(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert N. Stavins, 2020. "The Future of US Carbon-Pricing Policy," Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 1(1), pages 8-64.
    2. Stavins, Robert N., 2019. "The Future of U.S. Carbon-Pricing Policy: Normative Assessment and Positive Prognosis," Working Paper Series rwp19-017, Harvard University, John F. Kennedy School of Government.
    3. Rezazadeh, Ali Akbar & Avami, Akram, 2024. "An integrated policy approach for sustainable decarbonization pathways of energy system in a city under climate change scenarios," Energy Policy, Elsevier, vol. 195(C).
    4. Frans P. Vries & Nick Hanley, 2016. "Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation: A Review," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 687-702, April.
    5. Rohan Best & Paul J. Burke, 2020. "Energy mix persistence and the effect of carbon pricing," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 555-574, July.
    6. Al-Jabri, Hareb & Das, Probir & Khan, Shoyeb & AbdulQuadir, Mohammad & Thaher, Mehmoud Ibrahim & Hoekman, Kent & Hawari, Alaa H., 2022. "A comparison of bio-crude oil production from five marine microalgae – Using life cycle analysis," Energy, Elsevier, vol. 251(C).
    7. Łukasz Jarosław Kozar & Robert Matusiak & Marta Paduszyńska & Adam Sulich, 2022. "Green Jobs in the EU Renewable Energy Sector: Quantile Regression Approach," Energies, MDPI, vol. 15(18), pages 1-21, September.
    8. Julien Lefevre, 2018. "Modeling the Socioeconomic Impacts of the Adoption of a Carbon Pricing Instrument – Literature review," CIRED Working Papers hal-03128619, HAL.
    9. Verdone, Alessio & Scardapane, Simone & Panella, Massimo, 2024. "Explainable Spatio-Temporal Graph Neural Networks for multi-site photovoltaic energy production," Applied Energy, Elsevier, vol. 353(PB).
    10. Cagli, Efe Caglar, 2023. "The volatility spillover between battery metals and future mobility stocks: Evidence from the time-varying frequency connectedness approach," Resources Policy, Elsevier, vol. 86(PA).
    11. David M. Newbery & David M. Reiner & Robert A. Ritz, 2018. "When is a carbon price floor desirable?," Working Papers EPRG 1816, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    12. Martins, Flavio Pinheiro & De-León Almaraz, Sofía & Botelho Junior, Amilton Barbosa & Azzaro-Pantel, Catherine & Parikh, Priti, 2024. "Hydrogen and the sustainable development goals: Synergies and trade-offs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 204(C).
    13. Cristian Mardones, 2021. "Analysis on complementarity between a CO2 tax and an emissions trading system to reduce industrial emissions in Chile," Energy & Environment, , vol. 32(5), pages 820-833, August.
    14. Muhammad Asif & Muhammad Suleman & Ihtishamul Haq & Syed Asad Jamal, 2018. "Post‐combustion CO2 capture with chemical absorption and hybrid system: current status and challenges," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 8(6), pages 998-1031, December.
    15. Abdul-Salam, Yakubu & Kemp, Alex & Phimister, Euan, 2022. "Energy transition in the UKCS – Modelling the effects of carbon emission charges on upstream petroleum operations," Energy Economics, Elsevier, vol. 108(C).
    16. N. Thangaiyarkarasi & S. Vanitha, 2021. "The Impact of Financial Development on Decarbonization Factors of Carbon Emissions: A Global Perspective," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 353-364.
    17. Tinta, Abdoulganiour Almame, 2023. "Energy substitution in Africa: Cross-regional differentiation effects," Energy, Elsevier, vol. 263(PA).
    18. Oleksandr Sushchenko & Reimund Schwarze, 2016. "Carbon taxation and market financial instruments for mobilizing climate finance," Discussion Paper Series RECAP15 23, RECAP15, European University Viadrina, Frankfurt (Oder).
    19. Martina Ricci & Marcello Benvenuto & Stefano Gino Mosele & Roberto Pacciani & Michele Marconcini, 2022. "Predicting the Impact of Compressor Flexibility Improvements on Heavy-Duty Gas Turbines for Minimum and Base Load Conditions," Energies, MDPI, vol. 15(20), pages 1-14, October.
    20. Mardones, Cristian & Flores, Belén, 2018. "Effectiveness of a CO2 tax on industrial emissions," Energy Economics, Elsevier, vol. 71(C), pages 370-382.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:237:y:2024:i:pd:s0960148124019451. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.