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Carbon exergy tax (CET): its impact on conventional energy system design and its contribution to advanced systems utilisation


  • Massardo, A.F.
  • Santarelli, M.
  • Borchiellini, R.


A proposed analytical procedure for a charge on CO2 emissions is used to determine its impact on the design process of different conventional energy systems. The charge on CO2 emissions is defined as a Carbon Exergy Tax (CET). The CET utilises the concept of Efficiency Penalty of the energy system coupled with the Index of CO2Emissions, which connects the amount of the CO2 emitted by the plant with the Second Law efficiency of the plant itself. The aim is to reward the efficient use of energy resources, both from a resource and environmental standpoint, and to penalise plants inefficient in this respect. The CET and the conventional Carbon Tax (CT, based on energy policy considerations and imposed on the mass of emitted CO2) are applied to different conventional energy systems (a gas turbine simple cycle; a regenerative cogeneration gas turbine; a three pressure levels combined cycle) in order to determine their impact on the design of the plants. The effects of the CET and CT are investigated for different scenarios (pressure ratio, fuel cost, etc.). The results are presented using useful representations: the cost of electricity vs. efficiency, the cost of electricity vs. specific work, and the cost of electricity vs. plant design parameters (e.g., pressure ratio). Finally, ways that the use of the CET can contribute to the widespread utilization of advanced energy systems, which are more efficient and less polluting, is discussed. In particular, the CET and CT influence is presented and discussed for a solid oxide fuel cell (SOFC) and gas turbine combined cycle.

Suggested Citation

  • Massardo, A.F. & Santarelli, M. & Borchiellini, R., 2003. "Carbon exergy tax (CET): its impact on conventional energy system design and its contribution to advanced systems utilisation," Energy, Elsevier, vol. 28(7), pages 607-625.
  • Handle: RePEc:eee:energy:v:28:y:2003:i:7:p:607-625
    DOI: 10.1016/S0360-5442(02)00179-2

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    References listed on IDEAS

    1. Lozano, M.A. & Valero, A., 1993. "Theory of the exergetic cost," Energy, Elsevier, vol. 18(9), pages 939-960.
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    Cited by:

    1. Luo, Xianglong & Zhang, Bingjian & Chen, Ying & Mo, Songping, 2012. "Operational planning optimization of multiple interconnected steam power plants considering environmental costs," Energy, Elsevier, vol. 37(1), pages 549-561.
    2. Kondo, Kumiko, 2009. "Energy and exergy utilization efficiencies in the Japanese residential/commercial sectors," Energy Policy, Elsevier, vol. 37(9), pages 3475-3483, September.
    3. 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.
    4. García Kerdan, Iván & Raslan, Rokia & Ruyssevelt, Paul & Morillón Gálvez, David, 2017. "The role of an exergy-based building stock model for exploration of future decarbonisation scenarios and policy making," Energy Policy, Elsevier, vol. 105(C), pages 467-483.
    5. Lucia, Umberto, 2014. "Overview on fuel cells," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 164-169.
    6. Lucia, Umberto & Grisolia, Giulia, 2017. "Unavailability percentage as energy planning and economic choice parameter," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 197-204.

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