Discrete Dynamics in Nature and Society | VOL. 2020
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Carbon Tax and Trading Price on Power Plant with Carbon Capture and Storage under Incentive Regulation Theory

Publication Date Jan 30, 2020

Abstract

This paper investigates how the government can develop subsidies or tax policies to incent power plants to effectively carry out carbon capture to reduce carbon emissions. According to the government’s incentive model for carbon capture power plants, the regulation mechanism is developed when government controls carbon emission. When regional or national carbon emission quota is tense, significant effect can be obtained when regulators make regulations to take off low efficiency power plants. In addition, it is verified that the regulators should not blindly pursue a reduction in carbon emissions regardless of the cost. Therefore, regulators need to pay more attention to control the costs of carbon capture equipment and technology. Finally, by parametric and numerical analyses, the conditions of the power plant to maximize corporate surplus are further studied.

Concepts
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Carbon
Carbon Capture Power Plants
Plants
Power Plants
Power
Carbon Emission
Carbon Capture
Government
Incentive
Regulation

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