The impact of price and revenue floors on carbon emission reduction investment by coal-fired power plants

doi:10.1016/j.techfore.2020.119961

CASISD OpenIR

	The impact of price and revenue floors on carbon emission reduction investment by coal-fired power plants
	Zhang, Xinhua; Gan, Dongmei; Wang, Yali; Liu, Yu; Ge, Jiali; Xie, Rui
发表期刊	TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE
摘要	In this paper, we explore and compare the carbon emission rights price (carbon price) floor and revenue floor support schemes' incentive effects on coal-fired power plants' carbon emission reduction investment, considering random fluctuations of on-grid electricity volume and carbon price. First, we present real option models of carbon emission reduction investment under the carbon price floor and revenue floor schemes. Then, we discuss the optimal implementation duration of these two schemes. Results show the following: (1) both the carbon price floor and revenue floor support schemes can incentivize coal-fired power plants to invest in carbon emission reduction; however, there is a critical initial carbon price (CICP). Only if the initial carbon price is higher than the critical value can the carbon price floor or revenue floor encourage coal-fired power plants to immediately invest in carbon emission reduction. (2) Compared with the carbon price floor, the revenue floor requires a higher CICP but relatively fewer floor subsidies. If the initial carbon price is lower than the CICP and the carbon reduction facilities' operating costs are subsidized to ensure coal-fired power plants make the investment immediately, more subsidies are needed for the revenue floor policy than for the carbon price floor policy.
	2020
卷号	154
DOI	10.1016/j.techfore.2020.119961
语种	英语
引用统计
文献类型	期刊论文
条目标识符	http://ir.casisd.cn/handle/190111/9846
专题	中国科学院科技战略咨询研究院
推荐引用方式 GB/T 7714	Zhang, Xinhua,Gan, Dongmei,Wang, Yali,et al. The impact of price and revenue floors on carbon emission reduction investment by coal-fired power plants[J]. TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE,2020,154.
APA	Zhang, Xinhua,Gan, Dongmei,Wang, Yali,Liu, Yu,Ge, Jiali,&Xie, Rui.(2020).The impact of price and revenue floors on carbon emission reduction investment by coal-fired power plants.TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE,154.
MLA	Zhang, Xinhua,et al."The impact of price and revenue floors on carbon emission reduction investment by coal-fired power plants".TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE 154(2020).