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Precio de las emisiones de CO2 en la generación eléctrica
[Price of CO2 emissions in electricity generation]

Author

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  • Gómez-Ríos, María del Carmen
  • Juárez-Luna, David

Abstract

This paper aims to identify the effects of including the price of CO2 emissions in the Total Levelized Cost of Generation (CTNG, in Spanish) of the combined cycle power plant. Monte Carlo simulation is used to estimate the probability densities of the CTNG and the Total Levelized Cost of Generation with Externalities (CTNGE). The effects of the price of CO2 emissions in the CTNG of the combined cycle plant are analysed through the concepts of stochastic dominance. We find that the price of CO2 emissions makes the CTNGE of the combined cycle plant to be higher and riskier than the CTNG. On the other hand, the CTNGE of the combined cycle plant is very sensitive to changes in the price of CO2 emissions. The analysis suggests that the share of electricity generation through combined cycle plants should be reduced to replace it with clean technologies. A limitation of the work is that the CTNG and CTNGE probability densities, generated through Monte Carlo simulation, depend on the data used, so they are sensitive to changes in the input parameters.

Suggested Citation

  • Gómez-Ríos, María del Carmen & Juárez-Luna, David, 2018. "Precio de las emisiones de CO2 en la generación eléctrica [Price of CO2 emissions in electricity generation]," MPRA Paper 89915, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:89915
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    File URL: https://mpra.ub.uni-muenchen.de/89915/1/MPRA_paper_89915.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Juárez-Luna, David, 2020. "Beneficios económicos y ambientales de la energía nuclear [Economic and environmental benefits of nuclear energy]," MPRA Paper 98790, University Library of Munich, Germany.

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    More about this item

    Keywords

    CO2 Emissions; Generation; Electricity; Levelized Cost.;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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