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Estimating the impact of fuel-switching between liquid fuels and electricity under electricity-sector carbon-pricing schemes

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  • Dowds, Jonathan
  • Hines, Paul D.H.
  • Blumsack, Seth
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    Abstract

    Switching from liquid fuels to electricity in the transportation and heating sectors can result in greenhouse gas emissions reductions. These reductions are maximized when electricity-sector carbon emissions are constrained through policy measures. We use a linear optimization, generation expansion/dispatch model to evaluate the impact of increased electricity demand for plug-in electric vehicle charging on the generating portfolio, overall generating fuel mix, and the costs of electricity generation. We apply this model to the PJM Interconnect and ISO-New England Regional Transmission Organization service areas assuming a CO2 pricing scheme that is applied to the electricity sector but does not directly regulate emissions from other sectors. We find that a shift from coal toward natural gas and wind generation is sufficient to achieve a 50% reduction in electricity-sector CO2 emissions while supporting vehicle charging for 25% of the vehicle fleet. The price impacts of these shifts are sensitive to demand side price responsiveness and the capital costs of new wind construction.

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    Bibliographic Info

    Article provided by Elsevier in its journal Socio-Economic Planning Sciences.

    Volume (Year): 47 (2013)
    Issue (Month): 2 ()
    Pages: 76-88

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    Handle: RePEc:eee:soceps:v:47:y:2013:i:2:p:76-88

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    Web page: http://www.elsevier.com/locate/seps

    Related research

    Keywords: Fuel switching; Cap-and-trade; Electric vehicles; Dispatch; Capacity expansion; NHTS;

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    1. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers 12881, Iowa State University, Department of Economics.
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    3. Sergey Paltsev & John M. Reilly & Henry D. Jacoby & Angelo C. Gurgel & Gilbert E. Metcalf & Andrei P. Sokolov & Jennifer F. Holak, 2007. "Assessment of U.S. Cap-and-Trade Proposals," NBER Working Papers 13176, National Bureau of Economic Research, Inc.
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    6. Roth, Ian F. & Ambs, Lawrence L., 2004. "Incorporating externalities into a full cost approach to electric power generation life-cycle costing," Energy, Elsevier, vol. 29(12), pages 2125-2144.
    7. Sioshansi, Ramteen & Fagiani, Riccardo & Marano, Vincenzo, 2010. "Cost and emissions impacts of plug-in hybrid vehicles on the Ohio power system," Energy Policy, Elsevier, vol. 38(11), pages 6703-6712, November.
    8. Koomey, Jonathan & Hultman, Nathan E., 2007. "A reactor-level analysis of busbar costs for US nuclear plants, 1970-2005," Energy Policy, Elsevier, vol. 35(11), pages 5630-5642, November.
    9. Luickx, Patrick J. & Helsen, Lieve M. & D'haeseleer, William D., 2008. "Influence of massive heat-pump introduction on the electricity-generation mix and the GHG effect: Comparison between Belgium, France, Germany and The Netherlands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(8), pages 2140-2158, October.
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