Abstract

AbstractThe European greenhouse gas emission allowance trading scheme will result in a new input factor for CO2 emission intensive companies. Therefore, it is the first objective of this paper to characterise this new input factor. The second objective of this paper is to present different analysis tools for certificate trading issues. First a European energy model for the quantification of the impacts that emissions trading may have on electricity prices, technology choices, allowance prices and interregional power exchanges is developed. Furthermore, a model for the economic assessment of CO2 emission reduction technologies and strategies on a detailed company level is presented. Accounting for the fact that emission reduction measures in industrial production companies are rather limited, inter-company energy supply concepts are integrated into the energy planning process of these production companies. Finally, it is shown how project-based flexibility mechanisms (JI/CDM) can be considered in investment strategies of companies affected by emissions trading.KeywordsProduction managementoptimisation modelsEuropean electricity marketinvestment and long-term production planningcooperation approaches

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