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Innovative energy technologies and climate policy in Germany

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  • Schumacher, Katja
  • Sands, Ronald D.

Abstract

Due to the size and structure of its economy, Germany is one of the largest carbon emitters in the European Union. However, Germany is facing a major renewal and restructuring process in electricity generation. Within the next two decades, up to 50% of current electricity generation capacity may retire because of end-of-plant lifetime and the nuclear phase-out pact of 1998. Substantial opportunities therefore exist for deployment of advanced electricity generating technologies in both a projected baseline and in alternative carbon policy scenarios. We simulate the potential role of coal integrated gasification combined cycle (IGCC), natural gas combined cycle (NGCC), carbon dioxide capture and storage (CCS), and wind power within a computable general equilibrium of Germany from the present through 2050. These advanced technologies and their role within a future German electricity system are the focus of this paper. We model the response of greenhouse gas emissions in Germany to various technology and carbon policy assumptions over the next few decades. In our baseline scenario, all of the advanced technologies except CCS provide substantial contributions to electricity generation. We also calculate the carbon price where each fossil technology, combined with CCS, becomes competitive. Constant carbon price experiments are used to characterize the model response to a carbon policy. This provides an estimate of the cost of meeting an emissions target, and the share of emissions reductions available from the electricity generation sector.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 34 (2006)
Issue (Month): 18 (December)
Pages: 3929-3941

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Handle: RePEc:eee:enepol:v:34:y:2006:i:18:p:3929-3941

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References

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  1. McFarland, J. R. & Reilly, J. M. & Herzog, H. J., 2004. "Representing energy technologies in top-down economic models using bottom-up information," Energy Economics, Elsevier, Elsevier, vol. 26(4), pages 685-707, July.
  2. Sands, Ronald D., 2004. "Dynamics of carbon abatement in the Second Generation Model," Energy Economics, Elsevier, Elsevier, vol. 26(4), pages 721-738, July.
  3. Christopher N. MacCracken & James A. Edmonds & Son H. Kim & Ronald D. Sands, 1999. "The Economics of the Kyoto Protocol," The Energy Journal, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Special I), pages 25-71.
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Cited by:
  1. Bruninx, Kenneth & Madzharov, Darin & Delarue, Erik & D'haeseleer, William, 2013. "Impact of the German nuclear phase-out on Europe's electricity generation—A comprehensive study," Energy Policy, Elsevier, Elsevier, vol. 60(C), pages 251-261.
  2. Schumacher, Katja & Sands, Ronald D., 2007. "Where are the industrial technologies in energy-economy models? An innovative CGE approach for steel production in Germany," Energy Economics, Elsevier, Elsevier, vol. 29(4), pages 799-825, July.
  3. Vallentin, Daniel, 2007. "Inducing the international diffusion of carbon capture and storage technologies in the power sector," Wuppertal Papers 162, Wuppertal Institute for Climate, Environment and Energy.
  4. Evans, Annette & Strezov, Vladimir & Evans, Tim J., 2009. "Assessment of sustainability indicators for renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, Elsevier, vol. 13(5), pages 1082-1088, June.
  5. Vipin Arora & Yiyong Cai, 2014. "Disaggregating Electricity Generation Technologies in CGE Models," CAMA Working Papers 2014-54, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  6. Praetorius, Barbara & Schumacher, Katja, 2009. "Greenhouse gas mitigation in a carbon constrained world: The role of carbon capture and storage," Energy Policy, Elsevier, Elsevier, vol. 37(12), pages 5081-5093, December.
  7. Liu, Chung-Ming & Liou, Ming-Lone & Yeh, Shin-Cheng & Shang, Neng-Chou, 2009. "Target-aimed versus wishful-thinking in designing efficient GHG reduction strategies for a metropolitan city: Taipei," Energy Policy, Elsevier, Elsevier, vol. 37(2), pages 400-406, February.

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