Innovative Energy Technologies and Climate Policy in Germany
AbstractDue 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.
Download InfoIf 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.
Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 509.
Length: 29 p.
Date of creation: 2005
Date of revision:
Climate policy; Energy technology; General equilibrium modelling; CO2 capture and storage;
Other versions of this item:
- Schumacher, Katja & Sands, Ronald D., 2006. "Innovative energy technologies and climate policy in Germany," Energy Policy, Elsevier, vol. 34(18), pages 3929-3941, December.
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
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.:
- 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, vol. 26(4), pages 685-707, July.
- Sands, Ronald D., 2004. "Dynamics of carbon abatement in the Second Generation Model," Energy Economics, Elsevier, vol. 26(4), pages 721-738, July.
- 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, vol. 0(Special I), pages 25-71.
- Schumacher, Katja & Sands, Ronald D., 2007.
"Where are the industrial technologies in energy-economy models? An innovative CGE approach for steel production in Germany,"
Elsevier, vol. 29(4), pages 799-825, July.
- Katja Schumacher & Ronald D. Sands, 2006. "Where Are the Industrial Technologies in Energy-Economy Models?: An Innovative CGE Approach for Steel Production in Germany," Discussion Papers of DIW Berlin 605, DIW Berlin, German Institute for Economic Research.
- Barbara Praetorius & Katja Schumacher, 2008.
"Greenhouse Gas Mitigation in a Carbon Constrained World: The Role of Carbon Capture and Storage,"
Discussion Papers of DIW Berlin
820, DIW Berlin, German Institute for Economic Research.
- Praetorius, Barbara & Schumacher, Katja, 2009. "Greenhouse gas mitigation in a carbon constrained world: The role of carbon capture and storage," Energy Policy, Elsevier, vol. 37(12), pages 5081-5093, December.
- Evans, Annette & Strezov, Vladimir & Evans, Tim J., 2009. "Assessment of sustainability indicators for renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(5), pages 1082-1088, June.
- 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.
- 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, vol. 37(2), pages 400-406, February.
- 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, vol. 60(C), pages 251-261.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If references are entirely missing, you can add them using this form.