IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v35y2014icp205-210.html
   My bibliography  Save this article

Estimating the CO2 abatement cost: Substitute Price of Avoiding CO2 Emission (SPAE) by Renewable Energy׳s Feed in Tariff in selected countries

Author

Listed:
  • Bakhtyar, B.
  • Ibrahim, Y.
  • Alghoul, M.A.
  • Aziz, N.
  • Fudholi, A.
  • Sopian, K.

Abstract

Many renewable energy policies are looking into new incentives to absorb investments by targeting abating CO2 emission and fixing energy price fluctuation. Feed in Tariff (FIT) is a policy for rebating the amount of generated renewable electricity to investor. FIT is also defined as a CO2 mitigation policy in electricity generation from renewable sources. This paper presents a cost benefit survey that estimates the real produced carbon dioxide for electricity generation in selected countries. This study introduces the substitute price of avoiding CO2 emission as an indicator. The new indicator shows how much is paid for avoiding CO2 by each selected countries through the FIT policy for renewable technologies. The amount calculated for solar energy is taken as a case in this paper. The result confirms that the FIT policy reasonably works for solar energy in absorbing investment. However the FIT policy claims a large portion of liquidity compared with other approaches. Hence makes this mechanism inept as a CO2 mitigation policy.

Suggested Citation

  • Bakhtyar, B. & Ibrahim, Y. & Alghoul, M.A. & Aziz, N. & Fudholi, A. & Sopian, K., 2014. "Estimating the CO2 abatement cost: Substitute Price of Avoiding CO2 Emission (SPAE) by Renewable Energy׳s Feed in Tariff in selected countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 205-210.
    • Handle: RePEc:eee:rensus:v:35:y:2014:i:c:p:205-210
    DOI: 10.1016/j.rser.2014.04.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032114002433
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2014.04.016?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. Oecd, 2010. "Energy Security and Competition Policy," OECD Journal: Competition Law and Policy, OECD Publishing, vol. 11(1), pages 7-90.
    2. del Rio, Pablo & Gual, Miguel A., 2007. "An integrated assessment of the feed-in tariff system in Spain," Energy Policy, Elsevier, vol. 35(2), pages 994-1012, February.
    3. Kalampalikas, Nikolaos G. & Pilavachi, Petros A., 2010. "A model for the development of a power production system in Greece, Part I: Where RES do not meet EU targets," Energy Policy, Elsevier, vol. 38(11), pages 6499-6513, November.
    4. Florian Landis & Thomas Bernauer, 2012. "Transfer payments in global climate policy," Nature Climate Change, Nature, vol. 2(8), pages 628-633, August.
    5. Giraudet, Louis-Gaëtan & Guivarch, Céline & Quirion, Philippe, 2012. "Exploring the potential for energy conservation in French households through hybrid modeling," Energy Economics, Elsevier, vol. 34(2), pages 426-445.
    6. Sovacool, Benjamin K., 2008. "Valuing the greenhouse gas emissions from nuclear power: A critical survey," Energy Policy, Elsevier, vol. 36(8), pages 2940-2953, August.
    7. Kalampalikas, Nikolaos G. & Pilavachi, Petros A., 2010. "A model for the development of a power production system in Greece, Part II: Where RES meet EU targets," Energy Policy, Elsevier, vol. 38(11), pages 6514-6528, November.
    8. Gagnon, Luc & Belanger, Camille & Uchiyama, Yohji, 2002. "Life-cycle assessment of electricity generation options: The status of research in year 2001," Energy Policy, Elsevier, vol. 30(14), pages 1267-1278, November.
    9. Bakhtyar, B. & Sopian, K. & Sulaiman, M.Y. & Ahmad, S.A., 2013. "Renewable energy in five South East Asian countries: Review on electricity consumption and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 506-514.
    10. Sopian, Kamaruzzaman & Othman, Mohd.Yusof Hj., 1992. "Estimates of monthly average daily global solar radiation in Malaysia," Renewable Energy, Elsevier, vol. 2(3), pages 319-325.
    11. Jacobs, David & Marzolf, Natacha & Paredes, Juan Roberto & Rickerson, Wilson & Flynn, Hilary & Becker-Birck, Christina & Solano-Peralta, Mauricio, 2013. "Analysis of renewable energy incentives in the Latin America and Caribbean region: The feed-in tariff case," Energy Policy, Elsevier, vol. 60(C), pages 601-610.
    12. David Calef & Robert Goble, 2007. "The allure of technology: How France and California promoted electric and hybrid vehicles to reduce urban air pollution," Policy Sciences, Springer;Society of Policy Sciences, vol. 40(1), pages 1-34, March.
    13. Pehnt, Martin, 2006. "Dynamic life cycle assessment (LCA) of renewable energy technologies," Renewable Energy, Elsevier, vol. 31(1), pages 55-71.
    14. Tsoutsos, Theocharis & Papadopoulou, Eleni & Katsiri, Alexandra & Papadopoulos, Agis M., 2008. "Supporting schemes for renewable energy sources and their impact on reducing the emissions of greenhouse gases in Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(7), pages 1767-1788, September.
    15. Cherrington, R. & Goodship, V. & Longfield, A. & Kirwan, K., 2013. "The feed-in tariff in the UK: A case study focus on domestic photovoltaic systems," Renewable Energy, Elsevier, vol. 50(C), pages 421-426.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tsai, Wen-Tien, 2014. "Feed-in tariff promotion and innovative measures for renewable electricity: Taiwan case analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1126-1132.
    2. Ramli, Makbul A.M. & Twaha, Ssennoga, 2015. "Analysis of renewable energy feed-in tariffs in selected regions of the globe: Lessons for Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 649-661.
    3. Piotr Olczak & Agnieszka Żelazna & Dominika Matuszewska & Małgorzata Olek, 2021. "The “My Electricity” Program as One of the Ways to Reduce CO 2 Emissions in Poland," Energies, MDPI, vol. 14(22), pages 1-17, November.
    4. Oliveira, Tiago & Varum, Celeste & Botelho, Anabela, 2019. "Econometric modeling of CO2 emissions abatement: Comparing alternative approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 105(C), pages 310-322.
    5. Emília Inês Come Zebra & Gilberto Mahumane & Federico Antonio Canu & Ana Cardoso, 2021. "Assessing the Greenhouse Gas Impact of a Renewable Energy Feed-in Tariff Policy in Mozambique: Towards NDC Ambition and Recommendations to Effectively Measure, Report, and Verify Its Implementation," Sustainability, MDPI, vol. 13(10), pages 1-21, May.
    6. Breyer, Christian & Koskinen, Otto & Blechinger, Philipp, 2015. "Profitable climate change mitigation: The case of greenhouse gas emission reduction benefits enabled by solar photovoltaic systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 610-628.
    7. Shi, Kaifang & Chen, Yun & Yu, Bailang & Xu, Tingbao & Chen, Zuoqi & Liu, Rui & Li, Linyi & Wu, Jianping, 2016. "Modeling spatiotemporal CO2 (carbon dioxide) emission dynamics in China from DMSP-OLS nighttime stable light data using panel data analysis," Applied Energy, Elsevier, vol. 168(C), pages 523-533.
    8. Ganesh, Ibram, 2015. "Solar fuels vis-à-vis electricity generation from sunlight: The current state-of-the-art (a review)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 904-932.
    9. Bakhtyar, B. & Fudholi, A. & Hassan, Kabir & Azam, M. & Lim, C.H. & Chan, N.W. & Sopian, K., 2017. "Review of CO2 price in Europe using feed-in tariff rates," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 685-691.
    10. Shi, Kaifang & Chen, Yun & Li, Linyi & Huang, Chang, 2018. "Spatiotemporal variations of urban CO2 emissions in China: A multiscale perspective," Applied Energy, Elsevier, vol. 211(C), pages 218-229.

    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. Bakhtyar, B. & Fudholi, A. & Hassan, Kabir & Azam, M. & Lim, C.H. & Chan, N.W. & Sopian, K., 2017. "Review of CO2 price in Europe using feed-in tariff rates," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 685-691.
    2. Turconi, Roberto & Boldrin, Alessio & Astrup, Thomas, 2013. "Life cycle assessment (LCA) of electricity generation technologies: Overview, comparability and limitations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 555-565.
    3. Hong, Sanghyun & Bradshaw, Corey J.A. & Brook, Barry W., 2014. "Nuclear power can reduce emissions and maintain a strong economy: Rating Australia’s optimal future electricity-generation mix by technologies and policies," Applied Energy, Elsevier, vol. 136(C), pages 712-725.
    4. Alkan, Ömer & Albayrak, Özlem Karadağ, 2020. "Ranking of renewable energy sources for regions in Turkey by fuzzy entropy based fuzzy COPRAS and fuzzy MULTIMOORA," Renewable Energy, Elsevier, vol. 162(C), pages 712-726.
    5. Marques, António Cardoso & Fuinhas, José Alberto & Menegaki, Angeliki N., 2014. "Interactions between electricity generation sources and economic activity in Greece: A VECM approach," Applied Energy, Elsevier, vol. 132(C), pages 34-46.
    6. Kambezidis, Harry D. & Kasselouri, Barbara & Konidari, Popi, 2011. "Evaluating policy options for increasing the RES-E penetration in Greece," Energy Policy, Elsevier, vol. 39(9), pages 5388-5398, September.
    7. Song, Cuihong & Gardner, Kevin H. & Klein, Sharon J.W. & Souza, Simone Pereira & Mo, Weiwei, 2018. "Cradle-to-grave greenhouse gas emissions from dams in the United States of America," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 945-956.
    8. Voumvoulakis, Emmanouil & Asimakopoulou, Georgia & Danchev, Svetoslav & Maniatis, George & Tsakanikas, Aggelos, 2012. "Large scale integration of intermittent renewable energy sources in the Greek power sector," Energy Policy, Elsevier, vol. 50(C), pages 161-173.
    9. Evans, Annette & Strezov, Vladimir & Evans, Tim J., 2009. "Assessment of sustainability indicators for renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(5), pages 1082-1088, June.
    10. Halkos, George & Tzeremes, Panagiotis, 2015. "Scenario analysis on greenhouse gas emissions reduction in Southeast Balkans' energy system," MPRA Paper 65280, University Library of Munich, Germany.
    11. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    12. Strantzali, Eleni & Aravossis, Konstantinos, 2016. "Decision making in renewable energy investments: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 885-898.
    13. Kubiszewski, Ida & Cleveland, Cutler J. & Endres, Peter K., 2010. "Meta-analysis of net energy return for wind power systems," Renewable Energy, Elsevier, vol. 35(1), pages 218-225.
    14. Barrera-Santana, J. & Sioshansi, Ramteen, 2023. "An optimization framework for capacity planning of island electricity systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    15. Mehigan, L. & Deane, J.P. & Gallachóir, B.P.Ó. & Bertsch, V., 2018. "A review of the role of distributed generation (DG) in future electricity systems," Energy, Elsevier, vol. 163(C), pages 822-836.
    16. Tyralis, Hristos & Karakatsanis, Georgios & Tzouka, Katerina & Mamassis, Nikos, 2017. "Exploratory data analysis of the electrical energy demand in the time domain in Greece," Energy, Elsevier, vol. 134(C), pages 902-918.
    17. Mihaylov, Mihail & Rădulescu, Roxana & Razo-Zapata, Iván & Jurado, Sergio & Arco, Leticia & Avellana, Narcís & Nowé, Ann, 2019. "Comparing stakeholder incentives across state-of-the-art renewable support mechanisms," Renewable Energy, Elsevier, vol. 131(C), pages 689-699.
    18. Dotzauer, Erik, 2010. "Greenhouse gas emissions from power generation and consumption in a nordic perspective," Energy Policy, Elsevier, vol. 38(2), pages 701-704, February.
    19. Koltsaklis, Nikolaos E. & Liu, Pei & Georgiadis, Michael C., 2015. "An integrated stochastic multi-regional long-term energy planning model incorporating autonomous power systems and demand response," Energy, Elsevier, vol. 82(C), pages 865-888.
    20. Weisser, Daniel, 2007. "A guide to life-cycle greenhouse gas (GHG) emissions from electric supply technologies," Energy, Elsevier, vol. 32(9), pages 1543-1559.

    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:rensus:v:35:y:2014:i:c:p:205-210. 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.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    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.