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.
Highlights
With the global warming problem becoming more and more serious, the international situation pays more and more attention to the issue of carbon emissions, and the low carbon issue has become an important aspect of China’s participation in the world game
As one of the largest sectors of 2 emissions in China’s national economy, the power industry accounts for about 40% of total carbon emissions and power generation industry plays an important role in the development of low carbon economy in china. e proportion of China’s thermal power generation is more than 77%, the development of carbon emissions reduction policy for the thermal power industry is the most urgent and effective part of the low-carbon policy in the power generation industry [1,2,3,4]
Erefore, for the thermal power plant with carbon capture equipment, considering the carbon capture rate of the power plant as its private information, the controllable carbon capture rate of power plant as its efforts, this paper establishes the government’s incentive model for carbon capture power plants and study how the government can develop subsidies or tax policies to incent power plants to effectively carry out carbon capture to reduce carbon emissions
Summary
With the global warming problem becoming more and more serious, the international situation pays more and more attention to the issue of carbon emissions, and the low carbon issue has become an important aspect of China’s participation in the world game. E proportion of China’s thermal power generation is more than 77%, the development of carbon emissions reduction policy for the thermal power industry is the most urgent and effective part of the low-carbon policy in the power generation industry [1,2,3,4]. The existing low-carbon policy research on the power industry is mainly focused on optimizing the power supply structure [5] and the development and application of low-carbon technologies [6], how to reduce the carbon emissions of thermal power enterprises through government regulation, but the research on the low carbon policy of thermal power enterprises is relatively lacking. Erefore, for the thermal power plant with carbon capture equipment, considering the carbon capture rate of the power plant as its private information, the controllable carbon capture rate of power plant as its efforts, this paper establishes the government’s incentive model for carbon capture power plants and study how the government can develop subsidies or tax policies to incent power plants to effectively carry out carbon capture to reduce carbon emissions
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