Exploring the Carbon Pricing Strategy to Decarbonizing Coal-Fired Power Plants: A System Thinking Approach

Abstract

Carbon dioxide is an important component and one of the contributors to greenhouse gas emissions. Taiwan has set new goals to reduce emissions by 23%-25% in 2030. However, electricity production in 2021 is still contributed by coal-fired power plants. This research explores potential carbon pricing strategies to decarbonize coal-fired power plants, which are carbon fees and carbon emission trading. This research uses a system dynamics framework for causal loop diagram development. This research creates a causal loop diagram to describe the carbon pricing strategy's impact on reducing carbon emissions.