IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v69y2017icp685-691.html
   My bibliography  Save this article

Review of CO2 price in Europe using feed-in tariff rates

Author

Listed:
  • Bakhtyar, B.
  • Fudholi, A.
  • Hassan, Kabir
  • Azam, M.
  • Lim, C.H.
  • Chan, N.W.
  • Sopian, K.

Abstract

The price of carbon emitted by thermal plants has always been a favorite topic of researchers and policy makers. A substitute price for CO2 is calculated in this study based on real-time payments through government tariffs. These payments aim to mitigate CO2 emission caused by unregulated electricity generation. The total CO2 produced by the thermal plants of 10 European countries is shown in this study. The government's payment for each technology is utilized to clear the final CO2 abatement cost. The substitute price of avoiding CO2 emission (SPAC) for each technology and country is estimated. SPAC is basically the price that each country pays to avoid producing CO2. The conducted survey shows that the SPAC of the 10 European countries ranges from 63 to 2951 Euros depending on the type of technology used and the country's policy. Results confirm a competitive payment by governments only for German and UK hydro and UK wind technologies. Comparison of the countries’ payments for renewable energies and CO2 market price shows that governments incurred an inefficient payment of liquidity as a carbon mitigation policy.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:rensus:v:69:y:2017:i:c:p:685-691
    DOI: 10.1016/j.rser.2016.11.146
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S136403211630911X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2016.11.146?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. 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.
    2. Andrew K. Jorgenson, 2014. "Economic development and the carbon intensity of human well-being," Nature Climate Change, Nature, vol. 4(3), pages 186-189, March.
    3. Ian Parry & Chandara Veung & Dirk Heine, 2015. "How Much Carbon Pricing Is In Countries’ Own Interests? The Critical Role Of Co-Benefits," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 6(04), pages 1-26, November.
    4. Richard York, 2012. "Do alternative energy sources displace fossil fuels?," Nature Climate Change, Nature, vol. 2(6), pages 441-443, June.
    5. Bakhtyar, B. & Sopian, K. & Zaharim, A. & Salleh, E. & Lim, C.H., 2013. "Potentials and challenges in implementing feed-in tariff policy in Indonesia and the Philippines," Energy Policy, Elsevier, vol. 60(C), pages 418-423.
    6. Florian Landis & Thomas Bernauer, 2012. "Transfer payments in global climate policy," Nature Climate Change, Nature, vol. 2(8), pages 628-633, August.
    7. Hintermann, Beat & Peterson, Sonja & Rickels, Wilfried, 2014. "Price and market behavior in Phase II of the EU ETS," Kiel Working Papers 1962, Kiel Institute for the World Economy (IfW Kiel).
    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. Pehnt, Martin, 2006. "Dynamic life cycle assessment (LCA) of renewable energy technologies," Renewable Energy, Elsevier, vol. 31(1), pages 55-71.
    10. Peter Cramton, Axel Ockenfels, and Steven Stoft, 2015. "An International Carbon-Price Commitment Promotes Cooperation," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    11. 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.
    12. Caroline Klein, 2012. "Climate Change Policies in Germany: Make Ambition Pay," OECD Economics Department Working Papers 982, OECD Publishing.
    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. Vimpari, Jussi & Junnila, Seppo, 2019. "Estimating the diffusion of rooftop PVs: A real estate economics perspective," Energy, Elsevier, vol. 172(C), pages 1087-1097.
    2. Osvaldo Rodriguez-Hernandez & Manuel Martinez & Carlos Lopez-Villalobos & Hector Garcia & Rafael Campos-Amezcua, 2019. "Techno-Economic Feasibility Study of Small Wind Turbines in the Valley of Mexico Metropolitan Area," Energies, MDPI, vol. 12(5), pages 1-26, March.
    3. Li, Hong Xian & Zhang, Yitao & Li, Yan & Huang, Jiaxin & Costin, Glenn & Zhang, Peng, 2021. "Exploring payback-year based feed-in tariff mechanisms in Australia," Energy Policy, Elsevier, vol. 150(C).
    4. Fang, Guochang & Tian, Lixin & Liu, Menghe & Fu, Min & Sun, Mei, 2018. "How to optimize the development of carbon trading in China—Enlightenment from evolution rules of the EU carbon price," Applied Energy, Elsevier, vol. 211(C), pages 1039-1049.
    5. Barbara, Christian Enrico & D Adamo, Idiano & Gastaldi, Massimo & Nizami, Abdul Sattar, 2024. "Clean energy for a sustainable future: Analysis of a PV system and LED bulbs in a hotel," Energy, Elsevier, vol. 299(C).
    6. Yin, Yongjun & Chen, Shaoxu & Li, Xusheng & Jiang, Bo & Zhao, Joe RuHe & Nong, Guangzai, 2021. "Comparative analysis of different CHP systems using biogas for the cassava starch plants," Energy, Elsevier, vol. 232(C).
    7. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi & Vincenzo Stornelli, 2018. "Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis," Sustainability, MDPI, vol. 10(9), pages 1-29, August.
    8. Idiano D’Adamo, 2018. "The Profitability of Residential Photovoltaic Systems. A New Scheme of Subsidies Based on the Price of CO 2 in a Developed PV Market," Social Sciences, MDPI, vol. 7(9), pages 1-21, August.
    9. Petkov, Ivalin & Gabrielli, Paolo, 2020. "Power-to-hydrogen as seasonal energy storage: an uncertainty analysis for optimal design of low-carbon multi-energy systems," Applied Energy, Elsevier, vol. 274(C).
    10. B. Bakhtyar & Tarek Kacemi & Md Atif Nawaz, 2017. "A Review on Carbon Emissions in Malaysian Cement Industry," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 282-286.

    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. & 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.
    2. 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.
    3. Ryan P. Thombs, 2018. "Has the relationship between non-fossil fuel energy sources and CO2 emissions changed over time? A cross-national study, 2000–2013," Climatic Change, Springer, vol. 148(4), pages 481-490, June.
    4. 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.
    5. 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.
    6. Idiano D’Adamo, 2018. "The Profitability of Residential Photovoltaic Systems. A New Scheme of Subsidies Based on the Price of CO 2 in a Developed PV Market," Social Sciences, MDPI, vol. 7(9), pages 1-21, August.
    7. 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.
    8. 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.
    9. 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.
    10. Weisser, Daniel, 2007. "A guide to life-cycle greenhouse gas (GHG) emissions from electric supply technologies," Energy, Elsevier, vol. 32(9), pages 1543-1559.
    11. Amponsah, Nana Yaw & Troldborg, Mads & Kington, Bethany & Aalders, Inge & Hough, Rupert Lloyd, 2014. "Greenhouse gas emissions from renewable energy sources: A review of lifecycle considerations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 461-475.
    12. Reichling, J.P. & Kulacki, F.A., 2008. "Utility scale hybrid wind–solar thermal electrical generation: A case study for Minnesota," Energy, Elsevier, vol. 33(4), pages 626-638.
    13. Raadal, Hanne Lerche & Gagnon, Luc & Modahl, Ingunn Saur & Hanssen, Ole Jørgen, 2011. "Life cycle greenhouse gas (GHG) emissions from the generation of wind and hydro power," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(7), pages 3417-3422, September.
    14. Martin, Nigel J. & Rice, John L., 2017. "Examining the use of concept analysis and mapping software for renewable energy feed-in tariff design," Renewable Energy, Elsevier, vol. 113(C), pages 211-220.
    15. Troldborg, Mads & Heslop, Simon & Hough, Rupert L., 2014. "Assessing the sustainability of renewable energy technologies using multi-criteria analysis: Suitability of approach for national-scale assessments and associated uncertainties," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 1173-1184.
    16. Ingela Tietze & Lukas Lazar & Heidi Hottenroth & Steffen Lewerenz, 2020. "LAEND: A Model for Multi-Objective Investment Optimisation of Residential Quarters Considering Costs and Environmental Impacts," Energies, MDPI, vol. 13(3), pages 1-22, February.
    17. Huopana, Tuomas & Song, Han & Kolehmainen, Mikko & Niska, Harri, 2013. "A regional model for sustainable biogas electricity production: A case study from a Finnish province," Applied Energy, Elsevier, vol. 102(C), pages 676-686.
    18. Abu-Bakar, Siti Hawa & Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Mallick, Tapas Kumar & McLennan, Campbell & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Abdul Rahim, Ruzairi, 2013. "Is Renewable Heat Incentive the future?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 365-378.
    19. Tabata, Tomohiro & Okuda, Takaaki, 2012. "Life cycle assessment of woody biomass energy utilization: Case study in Gifu Prefecture, Japan," Energy, Elsevier, vol. 45(1), pages 944-951.
    20. Christian Schoder & Remzi Baris Tercioglu, 2024. "A climate-fiscal policy mix to achieve Türkiye’s net-zero ambition under feasibility constraints," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 21(2), pages 331-359, April.

    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:69:y:2017:i:c:p:685-691. 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.