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How to determine bottom-up model-derived marginal CO₂ abatement cost curves with high temporal, sectoral, and techno-economic resolution?

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  • Misconel, Steffi
  • Prina, Matteo Giacomo
  • Hobbie, Hannes
  • Möst, Dominik
  • Sparber, Wolfram

Abstract

Marginal CO2 abatement cost curves derived from bottom-up or top-down models are widely used by policymakers to determine the least-cost sequential order of decarbonization measures and the most effective decarbonization strategies. However, most model-based methods lack high temporal, sectoral, and techno-economic resolution. To address these limitations, this paper presents a linear optimization method with an hourly resolution for a sector-coupled power system to derive step-wise CO2 abatement cost curves. A step-wise marginal CO2 abatement cost curve is calculated based on hundreds of hourly dispatch model runs, giving a high level of detail on techno-economic, inter-temporal, and inter-sectoral interactions. Results demonstrate a dynamic relationship between technology-specific CO2 abatement costs, CO2 emission reductions, and total system cost development per installed decarbonization measure. Moreover, the results indicate how competing flexibility and decarbonization options interact and how least-cost decarbonization pathways can be reached.

Suggested Citation

  • Misconel, Steffi & Prina, Matteo Giacomo & Hobbie, Hannes & Möst, Dominik & Sparber, Wolfram, 2022. "How to determine bottom-up model-derived marginal CO₂ abatement cost curves with high temporal, sectoral, and techno-economic resolution?," EconStor Preprints 260472, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:260472
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    References listed on IDEAS

    as
    1. Anke, Carl-Philipp & Hobbie, Hannes & Schreiber, Steffi & Möst, Dominik, 2020. "Coal phase-outs and carbon prices: Interactions between EU emission trading and national carbon mitigation policies," Energy Policy, Elsevier, vol. 144(C).
    2. Misconel, Steffi & Zöphel, Christoph & Möst, Dominik, 2021. "Assessing the value of demand response in a decarbonized energy system – A large-scale model application," Applied Energy, Elsevier, vol. 299(C).
    3. Andreas Schafer and Henry D. Jacoby, 2006. "Experiments with a Hybrid CGE-MARKAL Model," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 171-177.
    4. Van den Bergh, Kenneth & Delarue, Erik, 2015. "Quantifying CO2 abatement costs in the power sector," Energy Policy, Elsevier, vol. 80(C), pages 88-97.
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    Keywords

    decarbonization measure; flexibility option; linear optimization; marginal abatement cost curve; sector-coupling;
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