IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v69y2014icp113-119.html
   My bibliography  Save this article

Potential of CO2 (carbon dioxide) taxes as a policy measure towards low-carbon Portuguese electricity sector by 2050

Author

Listed:
  • Gerbelová, Hana
  • Amorim, Filipa
  • Pina, André
  • Melo, Mário
  • Ioakimidis, Christos
  • Ferrão, Paulo

Abstract

The European Union proposed the introduction of taxes on emitted CO2 as an effective policy measure for the reduction of CO2 emissions in its electricity sector. Applying the TIMES (The Integrated MARKAL-EFOM System) modeling tool, this paper examines the cost effectiveness of different evolutions of CO2 taxes under the Emissions Trading System in Europe by 2050 in order to analyze the possible roles and limits of different mitigation technologies within the Portuguese electricity supply system. The results were analyzed based on the final year CO2 emissions of the electricity system when compared to 1990 levels. The results show that when CO2 prices stay below 50 €/tonne by 2050 there is no reduction in emitted CO2 emissions when compared to the levels of 1990. For CO2 prices reaching between 50 and 100 €/tonne there is a clear reduction in CO2 with the increase in the price, from 7% with 50 €/tonne to 79% with 100 €/tonne. For prices above 100 €/tonne the increased taxation has only a slight impact on the reduction of CO2 emissions, as even with a 300 €/tonne price the CO2 reductions achieved are only of 87%.

Suggested Citation

  • Gerbelová, Hana & Amorim, Filipa & Pina, André & Melo, Mário & Ioakimidis, Christos & Ferrão, Paulo, 2014. "Potential of CO2 (carbon dioxide) taxes as a policy measure towards low-carbon Portuguese electricity sector by 2050," Energy, Elsevier, vol. 69(C), pages 113-119.
    • Handle: RePEc:eee:energy:v:69:y:2014:i:c:p:113-119
    DOI: 10.1016/j.energy.2014.01.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544214000188
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2014.01.011?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. Rout, Ullash K. & Voβ, Alfred & Singh, Anoop & Fahl, Ulrich & Blesl, Markus & Ó Gallachóir, Brian P., 2011. "Energy and emissions forecast of China over a long-time horizon," Energy, Elsevier, vol. 36(1), pages 1-11.
    2. Lund, Henrik, 2006. "The Kyoto mechanisms and technological innovation," Energy, Elsevier, vol. 31(13), pages 2325-2332.
    3. Vaillancourt, Kathleen & Labriet, Maryse & Loulou, Richard & Waaub, Jean-Philippe, 2008. "The role of nuclear energy in long-term climate scenarios: An analysis with the World-TIMES model," Energy Policy, Elsevier, vol. 36(7), pages 2296-2307, July.
    4. Pina, André & Silva, Carlos A. & Ferrão, Paulo, 2013. "High-resolution modeling framework for planning electricity systems with high penetration of renewables," Applied Energy, Elsevier, vol. 112(C), pages 215-223.
    5. Ramos, J.S. & Ramos, H.M., 2009. "Sustainable application of renewable sources in water pumping systems: Optimized energy system configuration," Energy Policy, Elsevier, vol. 37(2), pages 633-643, February.
    6. Levine, Mark D. & Koomey, Jonathan G. & Price, Lynn & Geller, Howard & Nadel, Steven, 1995. "Electricity end-use efficiency: Experience with technologies, markets, and policies throughout the world," Energy, Elsevier, vol. 20(1), pages 37-61.
    7. van Vuuren, Detlef P. & Hoogwijk, Monique & Barker, Terry & Riahi, Keywan & Boeters, Stefan & Chateau, Jean & Scrieciu, Serban & van Vliet, Jasper & Masui, Toshihiko & Blok, Kornelis & Blomen, Eliane , 2009. "Comparison of top-down and bottom-up estimates of sectoral and regional greenhouse gas emission reduction potentials," Energy Policy, Elsevier, vol. 37(12), pages 5125-5139, December.
    8. Pina, André & Silva, Carlos & Ferrão, Paulo, 2012. "The impact of demand side management strategies in the penetration of renewable electricity," Energy, Elsevier, vol. 41(1), pages 128-137.
    9. Egenhofer, Christian, 2007. "The Making of the EU Emissions Trading Scheme:: Status, Prospects and Implications for Business," European Management Journal, Elsevier, vol. 25(6), pages 453-463, December.
    10. van der Zwaan, Bob & Gerlagh, Reyer, 2006. "Climate sensitivity uncertainty and the necessity to transform global energy supply," Energy, Elsevier, vol. 31(14), pages 2571-2587.
    11. Amorim, F. & Vasconcelos, J. & Abreu, I.C. & Silva, P.P. & Martins, V., 2013. "How much room for a competitive electricity generation market in Portugal?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 103-118.
    12. Pina, André & Silva, Carlos & Ferrão, Paulo, 2011. "Modeling hourly electricity dynamics for policy making in long-term scenarios," Energy Policy, Elsevier, vol. 39(9), pages 4692-4702, September.
    13. Blesl, Markus & Das, Anjana & Fahl, Ulrich & Remme, Uwe, 2007. "Role of energy efficiency standards in reducing CO2 emissions in Germany: An assessment with TIMES," Energy Policy, Elsevier, vol. 35(2), pages 772-785, February.
    14. da Graça Carvalho, Maria, 2012. "EU energy and climate change strategy," Energy, Elsevier, vol. 40(1), pages 19-22.
    15. Ludig, Sylvie & Haller, Markus & Schmid, Eva & Bauer, Nico, 2011. "Fluctuating renewables in a long-term climate change mitigation strategy," Energy, Elsevier, vol. 36(11), pages 6674-6685.
    16. Gutiérrez-Martín, F. & Da Silva-Álvarez, R.A. & Montoro-Pintado, P., 2013. "Effects of wind intermittency on reduction of CO2 emissions: The case of the Spanish power system," Energy, Elsevier, vol. 61(C), pages 108-117.
    17. Krajacic, Goran & Duic, Neven & Carvalho, Maria da Graça, 2011. "How to achieve a 100% RES electricity supply for Portugal?," Applied Energy, Elsevier, vol. 88(2), pages 508-517, February.
    18. Mo, Jian-Lei & Zhu, Lei & Fan, Ying, 2012. "The impact of the EU ETS on the corporate value of European electricity corporations," Energy, Elsevier, vol. 45(1), pages 3-11.
    19. Vögele, Stefan & Rübbelke, Dirk, 2013. "Decisions on investments in photovoltaics and carbon capture and storage: A comparison between two different greenhouse gas control strategies," Energy, Elsevier, vol. 62(C), pages 385-392.
    20. Haydt, Gustavo & Leal, Vítor & Pina, André & Silva, Carlos A., 2011. "The relevance of the energy resource dynamics in the mid/long-term energy planning models," Renewable Energy, Elsevier, vol. 36(11), pages 3068-3074.
    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. Dedinec, Aleksandar & Taseska-Gjorgievska, Verica & Markovska, Natasa & Obradovic Grncarovska, Teodora & Duic, Neven & Pop-Jordanov, Jordan & Taleski, Rubin, 2016. "Towards post-2020 climate change regime: Analyses of various mitigation scenarios and contributions for Macedonia," Energy, Elsevier, vol. 94(C), pages 124-137.
    2. Carrilho-Nunes, Inês & Catalão-Lopes, Margarida, 2022. "The effects of environmental policy and technology transfer on GHG emissions: The case of Portugal," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 255-264.
    3. Yang, Dong-xiao & Chen, Zi-yue & Yang, Yong-cong & Nie, Pu-yan, 2019. "Green financial policies and capital flows," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 522(C), pages 135-146.
    4. Mardones, Cristian & Baeza, Nicolas, 2018. "Economic and environmental effects of a CO2 tax in Latin American countries," Energy Policy, Elsevier, vol. 114(C), pages 262-273.
    5. Drielli Peyerl & Mariana Oliveira Barbosa & Mariana Ciotta & Maria Rogieri Pelissari & Evandro Mateus Moretto, 2022. "Linkages between the Promotion of Renewable Energy Policies and Low-Carbon Transition Trends in South America’s Electricity Sector," Energies, MDPI, vol. 15(12), pages 1-18, June.
    6. Ping Che & Yanyan Zhang & Jin Lang, 2019. "Emission-Intensity-Based Carbon Tax and Its Impact on Generation Self-Scheduling," Energies, MDPI, vol. 12(5), pages 1-17, February.
    7. Anjo, João & Neves, Diana & Silva, Carlos & Shivakumar, Abhishek & Howells, Mark, 2018. "Modeling the long-term impact of demand response in energy planning: The Portuguese electric system case study," Energy, Elsevier, vol. 165(PA), pages 456-468.
    8. Solaymani, Saeed & Kardooni, Roozbeh & Yusoff, Sumiani Binti & Kari, Fatimah, 2015. "The impacts of climate change policies on the transportation sector," Energy, Elsevier, vol. 81(C), pages 719-728.
    9. Duan, Hong-Bo & Zhu, Lei & Fan, Ying, 2014. "Optimal carbon taxes in carbon-constrained China: A logistic-induced energy economic hybrid model," Energy, Elsevier, vol. 69(C), pages 345-356.
    10. Fang, Guochang & Tian, Lixin & Fu, Min & Sun, Mei & Du, Ruijin & Liu, Menghe, 2017. "Investigating carbon tax pilot in YRD urban agglomerations—Analysis of a novel ESER system with carbon tax constraints and its application," Applied Energy, Elsevier, vol. 194(C), pages 635-647.
    11. Nagatomo, Yu & Ozawa, Akito & Kudoh, Yuki & Hondo, Hiroki, 2021. "Impacts of employment in power generation on renewable-based energy systems in Japan— Analysis using an energy system model," Energy, Elsevier, vol. 226(C).
    12. Rečka, L. & Ščasný, M., 2016. "Impacts of carbon pricing, brown coal availability and gas cost on Czech energy system up to 2050," Energy, Elsevier, vol. 108(C), pages 19-33.
    13. Cech, Marel & Janda, Karel, 2016. "Description of European policies and issues related to electricity pricing," MPRA Paper 74600, University Library of Munich, Germany.
    14. Di Leo, Senatro & Pietrapertosa, Filomena & Salvia, Monica & Cosmi, Carmelina, 2021. "Contribution of the Basilicata region to decarbonisation of the energy system: results of a scenario analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    15. Gacitua, L. & Gallegos, P. & Henriquez-Auba, R. & Lorca, Á. & Negrete-Pincetic, M. & Olivares, D. & Valenzuela, A. & Wenzel, G., 2018. "A comprehensive review on expansion planning: Models and tools for energy policy analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 346-360.

    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. Pina, André & Silva, Carlos A. & Ferrão, Paulo, 2013. "High-resolution modeling framework for planning electricity systems with high penetration of renewables," Applied Energy, Elsevier, vol. 112(C), pages 215-223.
    2. Amorim, Filipa & Pina, André & Gerbelová, Hana & Pereira da Silva, Patrícia & Vasconcelos, Jorge & Martins, Victor, 2014. "Electricity decarbonisation pathways for 2050 in Portugal: A TIMES (The Integrated MARKAL-EFOM System) based approach in closed versus open systems modelling," Energy, Elsevier, vol. 69(C), pages 104-112.
    3. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    4. Fehrenbach, Daniel & Merkel, Erik & McKenna, Russell & Karl, Ute & Fichtner, Wolf, 2014. "On the economic potential for electric load management in the German residential heating sector – An optimising energy system model approach," Energy, Elsevier, vol. 71(C), pages 263-276.
    5. Collins, Seán & Deane, John Paul & Poncelet, Kris & Panos, Evangelos & Pietzcker, Robert C. & Delarue, Erik & Ó Gallachóir, Brian Pádraig, 2017. "Integrating short term variations of the power system into integrated energy system models: A methodological review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 839-856.
    6. Poncelet, Kris & Delarue, Erik & Six, Daan & Duerinck, Jan & D’haeseleer, William, 2016. "Impact of the level of temporal and operational detail in energy-system planning models," Applied Energy, Elsevier, vol. 162(C), pages 631-643.
    7. Haller, Markus & Ludig, Sylvie & Bauer, Nico, 2012. "Bridging the scales: A conceptual model for coordinated expansion of renewable power generation, transmission and storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2687-2695.
    8. Maximilian Hoffmann & Leander Kotzur & Detlef Stolten & Martin Robinius, 2020. "A Review on Time Series Aggregation Methods for Energy System Models," Energies, MDPI, vol. 13(3), pages 1-61, February.
    9. Ringkjøb, Hans-Kristian & Haugan, Peter M. & Seljom, Pernille & Lind, Arne & Wagner, Fabian & Mesfun, Sennai, 2020. "Short-term solar and wind variability in long-term energy system models - A European case study," Energy, Elsevier, vol. 209(C).
    10. Thomas Heggarty & Jean-Yves Bourmaud & Robin Girard & Georges Kariniotakis, 2024. "Assessing the relative impacts of maximum investment rate and temporal detail in capacity expansion models applied to power systems," Post-Print hal-04383397, HAL.
    11. Prina, Matteo Giacomo & Nastasi, Benedetto & Groppi, Daniele & Misconel, Steffi & Garcia, Davide Astiaso & Sparber, Wolfram, 2022. "Comparison methods of energy system frameworks, models and scenario results," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    12. Scott, Ian J. & Carvalho, Pedro M.S. & Botterud, Audun & Silva, Carlos A., 2019. "Clustering representative days for power systems generation expansion planning: Capturing the effects of variable renewables and energy storage," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    13. Jain, A. & Yamujala, S. & Gaur, A. & Das, P. & Bhakar, R. & Mathur, J., 2023. "Power sector decarbonization planning considering renewable resource variability and system operational constraints," Applied Energy, Elsevier, vol. 331(C).
    14. Heejung Park, 2020. "Generation Capacity Expansion Planning Considering Hourly Dynamics of Renewable Resources," Energies, MDPI, vol. 13(21), pages 1-15, October.
    15. Rosenberg, Eva & Lind, Arne & Espegren, Kari Aamodt, 2013. "The impact of future energy demand on renewable energy production – Case of Norway," Energy, Elsevier, vol. 61(C), pages 419-431.
    16. Menten, Fabio & Tchung-Ming, Stéphane & Lorne, Daphné & Bouvart, Frédérique, 2015. "Lessons from the use of a long-term energy model for consequential life cycle assessment: The BTL case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 942-960.
    17. Henrik C. Bylling & Salvador Pineda & Trine K. Boomsma, 2020. "The impact of short-term variability and uncertainty on long-term power planning," Annals of Operations Research, Springer, vol. 284(1), pages 199-223, January.
    18. Pfenninger, Stefan, 2017. "Dealing with multiple decades of hourly wind and PV time series in energy models: A comparison of methods to reduce time resolution and the planning implications of inter-annual variability," Applied Energy, Elsevier, vol. 197(C), pages 1-13.
    19. Neves, Diana & Pina, André & Silva, Carlos A., 2015. "Demand response modeling: A comparison between tools," Applied Energy, Elsevier, vol. 146(C), pages 288-297.
    20. Chicco, Gianfranco & Stephenson, Paule M., 2012. "Effectiveness of setting cumulative carbon dioxide emissions reduction targets," Energy, Elsevier, vol. 42(1), pages 19-31.

    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:energy:v:69:y:2014:i:c:p:113-119. 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.journals.elsevier.com/energy .

    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.