Advanced Search
MyIDEAS: Login

The case of co-firing: The market level effects of subsidizing biomass co-combustion

Contents:

Author Info

  • Lintunen, Jussi
  • Kangas, Hanna-Liisa
Registered author(s):

    Abstract

    Biomass combustion in co-firing power plants has been treated differently in renewable electricity promoting policy schemes. Some policy schemes subsidize biomass co-combustion while some do not. In this study, we analyze the impacts of a policy choice on the fuel uses, investment decisions, CO2 emissions, and on the values of renewable electricity promoting policy instruments. In particular, we look at the impacts of feed-in tariff and a subsidy to renewable energy, both together with CO2 emissions price. We present an electricity and heat market model, where all the solid fossil fuel power plants are able to co-fire biomass and fossil fuel. In the numerical application, the model is used to analyze the differences caused by the policy instruments. The results show that subsidizing biomass combustion in a co-firing power plant decreases the investments in pure renewable technology. However, the use of solid fossil fuels is not increased significantly. Also, the CO2 intensity levels of electricity production are nearly equal whether biomass co-combustion is subsidized or not.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6V7G-4XPB6YR-2/2/9a2540d642c7dbea03ed1fac84eeef0c
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 32 (2010)
    Issue (Month): 3 (May)
    Pages: 694-701

    as in new window
    Handle: RePEc:eee:eneeco:v:32:y:2010:i:3:p:694-701

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/eneco

    Related research

    Keywords: Co-firing Biomass Feed-in law Renewable portfolio standard Electricity market;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Menanteau, Philippe & Finon, Dominique & Lamy, Marie-Laure, 2003. "Prices versus quantities: choosing policies for promoting the development of renewable energy," Energy Policy, Elsevier, vol. 31(8), pages 799-812, June.
    2. Fischer, Carolyn & Newell, Richard G., 2008. "Environmental and technology policies for climate mitigation," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 142-162, March.
    3. Kangas, Hanna-Liisa & Lintunen, Jussi & Uusivuori, Jussi, 2009. "The cofiring problem of a power plant under policy regulations," Energy Policy, Elsevier, vol. 37(5), pages 1898-1904, May.
    4. Amundsen, E.S. & Mortensen, J.B., 2001. "The Danish Green Certificate System: Some Simple Analytical Results," Norway; Department of Economics, University of Bergen 226, Department of Economics, University of Bergen.
    5. Jensen, S. G. & Skytte, K., 2002. "Interactions between the power and green certificate markets," Energy Policy, Elsevier, vol. 30(5), pages 425-435, April.
    6. Amundsen, Eirik S. & Mortensen, Jorgen Birk, 2001. "The Danish Green Certificate System: some simple analytical results," Energy Economics, Elsevier, vol. 23(5), pages 489-509, September.
    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 in new window

    Cited by:
    1. Mäkelä, Matti & Lintunen, Jussi & Kangas, Hanna-Liisa & Uusivuori, Jussi, 2011. "Pellet promotion in the Finnish sawmilling industry: The cost-effectiveness of different policy instruments," Journal of Forest Economics, Elsevier, vol. 17(2), pages 185-196, April.
    2. Lüschen, Andreas & Madlener, Reinhard, 2010. "Economics of Biomass Co-Firing in New Hard Coal Power Plants in Germany," FCN Working Papers 23/2010, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    3. P. Mathiou & Stelios Rozakis & Rafal Pudelko & A. Faber, 2012. "Economic and spatial modelling for estimating supply of perennial crops’ biomass in Poland," Working Papers 2012-2, Agricultural University of Athens, Department Of Agricultural Economics.
    4. Aravena, Claudia & Hutchinson, W. George & Longo, Alberto, 2012. "Environmental pricing of externalities from different sources of electricity generation in Chile," Energy Economics, Elsevier, vol. 34(4), pages 1214-1225.
    5. Aatola, Piia & Ollikainen, Markku & Toppinen, Anne, 2013. "Impact of the carbon price on the integrating European electricity market," Energy Policy, Elsevier, vol. 61(C), pages 1236-1251.
    6. P. Mathiou & Stelios Rozakis & Rafal Pudelko & A. Faber & A. Petsakos, 2014. "Utility maximising supply response: the case of perennial biomass plantations in Poland," Working Papers 2014-3, Agricultural University of Athens, Department Of Agricultural Economics.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:32:y:2010:i:3:p:694-701. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.