IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v47y2013i2p76-88.html
   My bibliography  Save this article

Estimating the impact of fuel-switching between liquid fuels and electricity under electricity-sector carbon-pricing schemes

Author

Listed:
  • Dowds, Jonathan
  • Hines, Paul D.H.
  • Blumsack, Seth

Abstract

Switching from liquid fuels to electricity in the transportation and heating sectors can result in greenhouse gas emissions reductions. These reductions are maximized when electricity-sector carbon emissions are constrained through policy measures. We use a linear optimization, generation expansion/dispatch model to evaluate the impact of increased electricity demand for plug-in electric vehicle charging on the generating portfolio, overall generating fuel mix, and the costs of electricity generation. We apply this model to the PJM Interconnect and ISO-New England Regional Transmission Organization service areas assuming a CO2 pricing scheme that is applied to the electricity sector but does not directly regulate emissions from other sectors. We find that a shift from coal toward natural gas and wind generation is sufficient to achieve a 50% reduction in electricity-sector CO2 emissions while supporting vehicle charging for 25% of the vehicle fleet. The price impacts of these shifts are sensitive to demand side price responsiveness and the capital costs of new wind construction.

Suggested Citation

  • Dowds, Jonathan & Hines, Paul D.H. & Blumsack, Seth, 2013. "Estimating the impact of fuel-switching between liquid fuels and electricity under electricity-sector carbon-pricing schemes," Socio-Economic Planning Sciences, Elsevier, vol. 47(2), pages 76-88.
    • Handle: RePEc:eee:soceps:v:47:y:2013:i:2:p:76-88
    DOI: 10.1016/j.seps.2012.09.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012112000523
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.seps.2012.09.004?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. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    2. Luickx, Patrick J. & Helsen, Lieve M. & D'haeseleer, William D., 2008. "Influence of massive heat-pump introduction on the electricity-generation mix and the GHG effect: Comparison between Belgium, France, Germany and The Netherlands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(8), pages 2140-2158, October.
    3. Koomey, Jonathan & Hultman, Nathan E., 2007. "A reactor-level analysis of busbar costs for US nuclear plants, 1970-2005," Energy Policy, Elsevier, vol. 35(11), pages 5630-5642, November.
    4. Liski, Matti, 2001. "Thin versus Thick CO2 Market," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 295-311, May.
    5. Ross Morrow, W. & Gallagher, Kelly Sims & Collantes, Gustavo & Lee, Henry, 2010. "Analysis of policies to reduce oil consumption and greenhouse-gas emissions from the US transportation sector," Energy Policy, Elsevier, vol. 38(3), pages 1305-1320, March.
    6. Sioshansi, Ramteen & Fagiani, Riccardo & Marano, Vincenzo, 2010. "Cost and emissions impacts of plug-in hybrid vehicles on the Ohio power system," Energy Policy, Elsevier, vol. 38(11), pages 6703-6712, November.
    7. Roth, Ian F. & Ambs, Lawrence L., 2004. "Incorporating externalities into a full cost approach to electric power generation life-cycle costing," Energy, Elsevier, vol. 29(12), pages 2125-2144.
    8. Sergey Paltsev & John M. Reilly & Henry D. Jacoby & Angelo C. Gurgel & Gilbert E. Metcalf & Andrei P. Sokolov & Jennifer F. Holak, 2007. "Assessment of U.S. Cap-and-Trade Proposals," NBER Working Papers 13176, National Bureau of Economic Research, Inc.
    9. DeCarolis, Joseph F. & Keith, David W., 2006. "The economics of large-scale wind power in a carbon constrained world," Energy Policy, Elsevier, vol. 34(4), pages 395-410, March.
    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. Wang, Jiqiang & Dai, Peng-Fei & Zhang, Xuewen, 2024. "Untangling the entanglement of US monetary policy uncertainty and European natural gas and carbon prices," Energy Economics, Elsevier, vol. 133(C).
    2. Briseño, Hugo & Ramirez-Nafarrate, Adrian & Araz, Ozgur M., 2021. "A multivariate analysis of hybrid and electric vehicles sales in Mexico," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    3. Ansaram, Karishma & Petitjean, Mikael, 2024. "A global perspective on the nexus between energy and stock markets in light of the rise of renewable energy," Energy Economics, Elsevier, vol. 131(C).
    4. Rode, David C. & Fischbeck, Paul S. & Páez, Antonio R., 2017. "The retirement cliff: Power plant lives and their policy implications," Energy Policy, Elsevier, vol. 106(C), pages 222-232.
    5. Sahraei-Ardakani, Mostafa & Blumsack, Seth & Kleit, Andrew, 2015. "Estimating zonal electricity supply curves in transmission-constrained electricity markets," Energy, Elsevier, vol. 80(C), pages 10-19.
    6. Gong, Xu & Shi, Rong & Xu, Jun & Lin, Boqiang, 2021. "Analyzing spillover effects between carbon and fossil energy markets from a time-varying perspective," Applied Energy, Elsevier, vol. 285(C).
    7. Dowds, Jonathan & Howerter, Sarah & Hines, Paul & Aultman-Hall, Lisa, 2024. "Integrated Modeling of Electric Vehicle Energy Demand and Regional Electricity Generation," Institute of Transportation Studies, Working Paper Series qt9nv8z4kc, Institute of Transportation Studies, UC Davis.
    8. Lerche, Nils & Wilkens, Ines & Schmehl, Meike & Eigner-Thiel, Swantje & Geldermann, Jutta, 2019. "Using methods of Multi-Criteria Decision Making to provide decision support concerning local bioenergy projects," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    9. Chen, Hao & Geng, Hao-Peng & Ling, Hui-Ting & Peng, Song & Li, Nan & Yu, Shiwei & Wei, Yi-Ming, 2020. "Modeling the coal-to-gas switch potentials in the power sector: A case study of China," Energy, Elsevier, vol. 192(C).

    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. Taylor, Josh A. & Dhople, Sairaj V. & Callaway, Duncan S., 2016. "Power systems without fuel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1322-1336.
    2. Galinato, Gregmar I. & Yoder, Jonathan K., 2010. "An integrated tax-subsidy policy for carbon emission reduction," Resource and Energy Economics, Elsevier, vol. 32(3), pages 310-326, August.
    3. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 815-876, Elsevier.
    4. Hultman, Nathan E. & Malone, Elizabeth L. & Runci, Paul & Carlock, Gregory & Anderson, Kate L., 2012. "Factors in low-carbon energy transformations: Comparing nuclear and bioenergy in Brazil, Sweden, and the United States," Energy Policy, Elsevier, vol. 40(C), pages 131-146.
    5. van Kooten, G. Cornelis, 2015. "All you want to know about the Economics of Wind Power," Working Papers 241693, University of Victoria, Resource Economics and Policy.
    6. Ali Mirchi & Saeed Hadian & Kaveh Madani & Omid M. Rouhani & Azadeh M. Rouhani, 2012. "World Energy Balance Outlook and OPEC Production Capacity: Implications for Global Oil Security," Energies, MDPI, vol. 5(8), pages 1-26, July.
    7. Suopajärvi, Hannu & Umeki, Kentaro & Mousa, Elsayed & Hedayati, Ali & Romar, Henrik & Kemppainen, Antti & Wang, Chuan & Phounglamcheik, Aekjuthon & Tuomikoski, Sari & Norberg, Nicklas & Andefors, Alf , 2018. "Use of biomass in integrated steelmaking – Status quo, future needs and comparison to other low-CO2 steel production technologies," Applied Energy, Elsevier, vol. 213(C), pages 384-407.
    8. Tonini, Davide & Vadenbo, Carl & Astrup, Thomas Fruergaard, 2017. "Priority of domestic biomass resources for energy: Importance of national environmental targets in a climate perspective," Energy, Elsevier, vol. 124(C), pages 295-309.
    9. Lotze-Campen, Hermann & von Witzke, Harald & Noleppa, Steffen & Schwarz, Gerald, 2015. "Science for food, climate protection and welfare: An economic analysis of plant breeding research in Germany," Agricultural Systems, Elsevier, vol. 136(C), pages 79-84.
    10. Iriarte, Alfredo & Rieradevall, Joan & Gabarrell, Xavier, 2012. "Transition towards a more environmentally sustainable biodiesel in South America: The case of Chile," Applied Energy, Elsevier, vol. 91(1), pages 263-273.
    11. Knut Einar Rosendahl & Jon Strand, 2011. "Carbon Leakage from the Clean Development Mechanism," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 27-50.
    12. Rüdisüli, Martin & Romano, Elliot & Eggimann, Sven & Patel, Martin K., 2022. "Decarbonization strategies for Switzerland considering embedded greenhouse gas emissions in electricity imports," Energy Policy, Elsevier, vol. 162(C).
    13. Enevoldsen, Peter & Sovacool, Benjamin K., 2016. "Integrating power systems for remote island energy supply: Lessons from Mykines, Faroe Islands," Renewable Energy, Elsevier, vol. 85(C), pages 642-648.
    14. Kriegler, Elmar, 2011. "Comment," Energy Economics, Elsevier, vol. 33(4), pages 594-596, July.
    15. Proost, Stef & Van Dender, Kurt, 2012. "Energy and environment challenges in the transport sector," Economics of Transportation, Elsevier, vol. 1(1), pages 77-87.
    16. Scorah, Hugh & Sopinka, Amy & van Kooten, G. Cornelis, 2012. "The economics of storage, transmission and drought: integrating variable wind power into spatially separated electricity grids," Energy Economics, Elsevier, vol. 34(2), pages 536-541.
    17. repec:fpr:ifprib:2012ghienglish is not listed on IDEAS
    18. Joseph E. Aldy & William A. Pizer, 2009. "Issues in Designing U.S. Climate Change Policy," The Energy Journal, , vol. 30(3), pages 179-210, July.
    19. Canabarro, N.I. & Silva-Ortiz, P. & Nogueira, L.A.H. & Cantarella, H. & Maciel-Filho, R. & Souza, G.M., 2023. "Sustainability assessment of ethanol and biodiesel production in Argentina, Brazil, Colombia, and Guatemala," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    20. Baral, Nabin & Rabotyagov, Sergey, 2017. "How much are wood-based cellulosic biofuels worth in the Pacific Northwest? Ex-ante and ex-post analysis of local people's willingness to pay," Forest Policy and Economics, Elsevier, vol. 83(C), pages 99-106.
    21. Bhardwaj, Chandan & Axsen, Jonn & Kern, Florian & McCollum, David, 2020. "Why have multiple climate policies for light-duty vehicles? Policy mix rationales, interactions and research gaps," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 309-326.

    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:soceps:v:47:y:2013:i:2:p:76-88. 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/locate/seps .

    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.