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

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  • 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
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    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. repec:eee:phsmap:v:522:y:2019:i:c:p:135-146 is not listed on IDEAS
    3. repec:eee:enepol:v:114:y:2018:i:c:p:262-273 is not listed on IDEAS
    4. repec:gam:jeners:v:12:y:2019:i:5:p:777-:d:209163 is not listed on IDEAS
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. Cech, Marel & Janda, Karel, 2016. "Description of European policies and issues related to electricity pricing," MPRA Paper 74600, University Library of Munich, Germany.
    10. repec:eee:rensus:v:98:y:2018:i:c:p:346-360 is not listed on IDEAS

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