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. 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.
    2. 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.
    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. 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.
    6. 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.
    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. 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.
    9. S. Paltsev & J. Reilly & H. Jacoby & A. Gurgel & G. Metcalf & A. Sokolov & J. Holak, 2007. "Assessment of U.S. Cap-and-Trade Proposals," Working Papers 0705, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
    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. 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).
    2. 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.
    3. 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.
    4. 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).
    5. 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).
    6. 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).
    7. 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.
    8. 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).
    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. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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).
    8. 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.
    9. 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).
    10. Baka, Jennifer & Roland-Holst, David, 2009. "Food or fuel? What European farmers can contribute to Europe's transport energy requirements and the Doha Round," Energy Policy, Elsevier, vol. 37(7), pages 2505-2513, July.
    11. Nguyen, Thu Lan T. & Hermansen, John E. & Mogensen, Lisbeth, 2010. "Fossil energy and GHG saving potentials of pig farming in the EU," Energy Policy, Elsevier, vol. 38(5), pages 2561-2571, May.
    12. Sarah Jansen & William Foster & Gustavo Anríquez & Jorge Ortega, 2021. "Understanding Farm-Level Incentives within the Bioeconomy Framework: Prices, Product Quality, Losses, and Bio-Based Alternatives," Sustainability, MDPI, vol. 13(2), pages 1-21, January.
    13. Shuxia Yang & Yu Ji & Di Zhang & Jing Fu, 2019. "Equilibrium between Road Traffic Congestion and Low-Carbon Economy: A Case Study from Beijing, China," Sustainability, MDPI, vol. 11(1), pages 1-22, January.
    14. Valentine, Scott Victor, 2011. "Understanding the variability of wind power costs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3632-3639.
    15. Argueyrolles, Robin & Delzeit, Ruth, 2022. "The interconnections between Fossil Fuel Subsidy Reforms and biofuels," Conference papers 333492, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Aruga, Kentaka, 2011. "非遺伝子組換え大豆とエネルギーの価格関係について [Relationships among the Non-Genetically Modified Soybean and Energy Prices]," MPRA Paper 38186, University Library of Munich, Germany, revised 20 Aug 2011.
    17. Ribeiro, Lauro André & Silva, Patrícia Pereira da, 2013. "Surveying techno-economic indicators of microalgae biofuel technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 89-96.
    18. Gal Hochman & Chrysostomos Tabakis, 2020. "Biofuels and Their Potential in South Korea," Sustainability, MDPI, vol. 12(17), pages 1-17, September.
    19. Mohlin, Kristina & Camuzeaux, Jonathan R. & Muller, Adrian & Schneider, Marius & Wagner, Gernot, 2018. "Factoring in the forgotten role of renewables in CO2 emission trends using decomposition analysis," Energy Policy, Elsevier, vol. 116(C), pages 290-296.
    20. Khoo, Hsien H., 2015. "Review of bio-conversion pathways of lignocellulose-to-ethanol: Sustainability assessment based on land footprint projections," Renewable and Sustainable Energy Reviews, Elsevier, vol. 46(C), pages 100-119.

    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.