Current Electricity Prices Research Articles

Economic and environmental feasibility of coupled wind power-subsurface compressed CO2 energy storage system in China: An LCA approach

Energy storage is a crucial solution for addressing the uneven distribution of renewable energy sources, including wind, hydropower, and solar. A novel technology that combines energy storage with underground CO2 storage is introduced, building upon compressed CO2 energy storage (CCES), an advancement of compressed air energy storage systems. Through a case study and literature review, a life cycle assessment (LCA) is conducted to evaluate the economic and environmental performance of a wind power—CCES coupled system. The results indicate that the global warming potential (GWP) and acidification potential (AP) of the CCES system coupled with wind power are 19g CO2-eq/kWh and 0.13g SO2-eq/kWh, respectively, which are significantly lower than those of coal power and are lower than those of wind power alone. Currently, the power output of this energy storage system is limited. However, in an optimistic scenario, the cost to build and operate a wind power—CCES coupled system can be recovered within 16 years based on current electricity prices in China. Therefore, utilizing CO2 storage reservoirs to store excess electricity from wind power is a feasible approach in China's power system from both economic and environmental perspectives.

Self-consumption potential and surplus compensation policy impact on rooftop photovoltaic systems in Spain

This research examines the viability of rooftop photovoltaic systems for electricity self-consumption in Spain's residential sector, analyzing municipality-level data on electricity demand, rooftop availability, solar irradiance, and various electricity market and surplus policy scenarios. Differences are found between rural and urban contexts, with rural areas exhibiting greater potential for photovoltaic systems deployment due to more available rooftop space. The study highlights the crucial role of surplus electricity management, showing that an efficient use can significantly boost self-consumption potential, particularly in rural areas where surplus constitutes about two-thirds of the photovoltaic production. Economic analyses under different electricity market conditions and surplus compensation policies show that these factors critically affect the attractiveness and viability of these systems. Current high electricity prices in Spain have reduced their payback period, but the prevalent surplus compensation policy, a 1-month net billing feed-in tariff, reduces their cost-effectiveness by up to 60 % compared to a hypothetical 12-month net billing approach. The findings underscore the need for policy adjustments to maximize rooftop occupancy and ensure fair compensation of surpluses, highlighting the importance of tailored strategies for effective sustainable photovoltaic systems deployment in residential contexts.

Methodology for Selecting a Location for a Photovoltaic Farm on the Example of Poland

As the LCOE for photovoltaics has decreased several times, it is once again gaining popularity. The intensification of the development of PV installations is contributing to the duck curve phenomenon in an increasing number of countries and, consequently, affecting current electricity prices. Decisions on new investments in large-scale PV sources are driven by potential economic and environmental effects, and these, in turn, are subject to locational considerations, both as to the country and its region. In calculating the economic impact of locating a 1 MWp PV farm, it was assumed that the electricity generated by the farm would be fed into the national grid, and that the life of the PV farm would be 20 years. Poland was considered as an example country for the placement of a photovoltaic farm. The authors of this paper proposed that the main verification parameter is the availability of connection capacities to feed the produced electricity into the country’s electricity grid. The methodology proposed by the authors for the selection of the location of a PV farm consists of four steps: step (i) identification and selection of the administrative division of a given country; step (ii) verification of available connection capacities; step (iii) (two stages) verification of other factors related to the location of the PV farm (e.g., information on land availability and the distance of the land from the substation), and analysis of productivity at each potential location and electricity prices achieved on the power exchange; step (iv) economic analysis of the investment—analyses of PV farm energy productivity in monetary terms on an annual basis, cost analysis (CAPEX, OPEX) and evaluation of economic efficiency (DPP, NPV, IRR). The greatest impact on the economic efficiency of a PV project is shown by the value of land (as part of CAPEX), which is specific to a given location, and revenues from energy sales, which are pretty similar for all locations.

Environmental, Energy, and Techno-Economic Assessment of Waste-to-Energy Incineration

Waste-to-energy (WtE) incineration is a feasible way to respond to both the municipal solid waste management and renewable energy challenges, but few studies have been carried out on its environmental and economic impact in fast-developing southeastern Asian countries. To fill such a research gap, this study innovatively conducted a holistic assessment of WtE incineration application potential in Java Island, Indonesia. Here, we have established a life cycle assessment model for WtE incineration in Java, and have estimated the environmental impact, electricity generation potential, and techno-economic feasibility of implementing incineration by 2025. We have revealed that global warming potential, terrestrial ecotoxicity potential, eutrophication potential, and acidification potential are the major environmental impacts stemming from incineration activities. Moreover, we have estimated that promoting incineration in Java could reduce CO2 emissions by 41% on average. The electricity generated from incineration could contribute to 3.72% of Indonesia’s renewable energy target for the electricity grid mix by 2025. The cumulative energy production potential from incineration is estimated to reach 2,316,523 MWh/year in 2025 and will increase by 14.3% in 2050. The techno-economic assessment of incineration implementation in Java cities has been enumerated as feasible. The levelized cost of electricity from incineration (0.044 USD/kWh) is competitive with the current Indonesian electricity price (0.069 USD/kWh). Policies of minimizing incineration pollution, providing financial support guarantees, and overcoming social barriers have been proposed to facilitate the application of WtE incineration.

Anomaly Detection Model of Time Segment Power Usage Behavior Using Unsupervised Learning

<p>In Taiwan, the current electricity prices for residential users remain relatively low. This results in a diminished incentive for these users to invest in energy-saving improvements. Consequently, devising strategies to encourage residential users to adopt energy-saving measures becomes a vital research area. Grounded in behavioral science, this study introduces a feasible approach where an energy management system provides alerts and corresponding energy-saving recommendations to residential users upon detecting abnormal electricity consumption behavior. To pinpoint anomalous electricity usage within specific time segments, this research employs an unsupervised machine learning method, developing an anomaly detection model for the overall electricity consumption behavior of residential users. The model focuses on analyzing 2-hour intervals of electricity consumption, enabling more effective detection of abnormal usage patterns. It is trained using power consumption data collected from five actual residential users as part of an experimental study. The results indicate that the proposed anomaly detection model achieves performance metrics such as Precision, Recall, and F1-score of 0.90 or above, showcasing its potential for practical implementation.</p> <p> </p>

Protein plant factories: production and resource use efficiency of soybean proteins in vertical farming.

Controlled environment agriculture, particularly vertical farms (VF), also called plant factories, is often claimed as a solution for global food security due to its ability to produce crops unaffected by weather or pests. In principle, essential macronutrients of the human diet, like protein, could technically be produced in VF. This aspect becomes relevant in the era of protein transition, marked by an increasing consumer interest in plant-based protein and environmental challenges faced by conventional farming. However, the real question is: what does the cultivation of protein crops in VF imply in terms of resource use? To address this, a study was conducted using a VF experiment focusing on two soybean cultivars. With a variable plant density to optimize area use, and because of the ability to have more crop cycles per year, protein yield per square metre of crop was about eight times higher than in the open field. Assuming soy as the only protein source in the diet, the resources needed to get total yearly protein requirement of a reference adult would be 20 m2 of crop area, 2.4 m3 of water and 16 MWh of electricity, versus 164 m2, 111 m3 and 0.009 MWh in the field. The study's results inform the debate on protein production and the efficiency of VF compared to conventional methods. With current electricity prices, it is unlikely to justify production of simple protein crops in VF or promote it as a solution to meet global protein needs. © 2024 The Authors. Journal of The Science of Food and Agriculture published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry.

Capacity Allocation Method of Pumped-Storage Power Station for Multi-Level Market in New Power System

With the development of the electricity spot market, pumped-storage power stations are faced with the problem of realizing flexible adjustment capabilities and limited profit margins under the current two-part electricity price system. At the same time, the penetration rate of new energy has increased. Its uncertainty has brought great pressure to the operation of the power system. The ramp market and its market mechanism have emerged as the times require. To this end, this article proposes a bidding strategy for pumped-storage power stations to participate in multi-level markets such as the ramp market. Considering the demand calculation of ramping services, a two-layer model of pumped storage’s participation in multiple markets is constructed. The upper level makes trading decisions with the goal of maximizing pumped-storage revenue; the lower level aims to minimize the total social cost and jointly clears the primary and auxiliary markets. The income from pumped storage participating in the main energy and ramp-up auxiliary markets at the same time is significantly higher than the income from the two-part electricity price system. Its flexible adjustment ability can be quantified, reducing dependence on capacity electricity charges and providing a theoretical reference for cost recovery and profitability of future pumped-storage power stations.

Energy, economic, and environmental (3E) performance assessment, comparison, and analysis of airport cargo terminal microgrid system under the islanded and grid-connected modes

Microgrids, which can be grid-connected or isolated, may experience dependability issues as a result of intermittent renewable energy. The implementation of a hybrid renewable energy system (HRES) could alleviate this problem but is still a challenging task because of its interference, uncertain, and unpredictable nature. Currently, the absence of comprehensive assessment impedes large-scale applications. In this study, a novel 3E assessment method-based complete quantitative assessment is suggested and inventively integrated with a newly proposed triangle evaluation scheme. Loads of an airport cargo terminal, which are used to test the assessment approach, are classified into critical and non-critical categories according to their necessity. The microgrid system flexibility is considered by the trade-off of non-critical loads. Results show that the assessment method is more intuitive in quantifying the system's performance. The Levelized Cost of Energy (LCOE) in the islanded mode is lower than the current electricity price (from 0.5407 to 0.5439 CNY/kWh) and the annual carbon emission is reduced to one-third of that in the grid-connected mode. Its flexibility can effectively reduce dependence on backup power generation, where the daily peak shedding increases from 217.88 kW to 555.04 kW and daily hours without charging from 6.7 h to 8.9 h. The carbon emission decreases by 32 % considering the impacts of the system flexibility. Besides, the critical distance exists when the LCOE exceeds the current market electricity price.

Optimal design of PV-based grid-connected hydrogen production systems

A cost-optimal design of power-to-hydrogen (PtH) systems is crucial to produce hydrogen at the lowest specific cost. New challenges arise when it comes to ensuring a reliable and cost-effective hydrogen supply in the presence of variable renewable energy sources. In this context, the aim of this analysis is to investigate the optimal design of PV-based grid-connected hydrogen production systems under different scenarios. To this end, an optimisation framework based on the mixed integer linear programming (MILP) technique is developed. Results are presented by employing a set of techno-economic and environmental indicators to provide general guidance on how to optimally size PtH systems, going beyond the analysis of a specific case study. The analysis is applied to Italy and particular attention is paid to exploring the impact of the price of grid electricity.The results indicate that the price of grid electricity strongly affects the optimal design of PtH systems. Specifically, in scenarios with high electricity prices, it is economically convenient to significantly oversize the PV plant and the electrolyser. The optimal PV ratio, representing the ratio between the PV size and the electrolyser size, increases from 1.6 to 2.7 as the electricity price rises from 50 to 300 €/MWh. Additionally, when electricity prices exceed approximately 120 €/MWh, the optimal electrolyser size (in terms of hydrogen production under rated conditions) becomes almost three times larger than the average hydrogen demand. By comparing grid-connected and off-grid scenarios, the importance of the electrical grid is also highlighted: even when poorly used, it plays a crucial role in limiting the size of the hydrogen storage. The levelised cost of hydrogen for the optimal PtH configuration falls within the range of 3.5–7 €/kg (depending on the price of grid electricity) and increases to 8.2 €/kg when the system operates off-grid. Finally, the hydrogen carbon footprint, quantified as kgCO2,e/kgH2, is also explored. Considering the current price and carbon intensity of grid electricity, the cost-optimal PtH configuration already involves the production of renewable hydrogen (<3 kgCO2,e/kgH2).

Multi-level framework for optimal operation of gasifier system utilising crop residues from small and medium-scale farms

Lack of techno-economic framework for optimal gasification and the identification of critical parameters for optimal operations is one of the major challenges restricting the gasification of crop residues. This study aims to develop an optimal techno-economic framework for the gasification of crop residues from clustered small/medium-scale farms. The developed model was applied to a case study in Adiembra, a farming community for a 10-kW gasifier engine system. Eight scenarios of individual feedstock and their blends were considered. The results revealed specific fuel consumption ranging from 1.79 – 3.53 kg/kWh. The economic analysis showed marginal profitability except for rice husk and straw which are not profitable. At the current grid electricity price, the minimum level of subsidies required to ensure the financial viability of the feedstocks is within the range of 30 – 70 % of the investment cost based on the various feedstock scenarios considered. The study revealed individual feedstocks with the best technical and economic prospects for optimal gasification to be cocoa pod husk, maize stalk and husk, maize cobs, rice straw and rice husk in the order of best to worst. The use of feedstock blends generally improved the overall syngas characteristics and financial viability. A total number of farms ranging between 107 – 532 are required to be clustered within a radius of 0.74 – 2.12 km with a cluster radius greater than 3.91 km not being financially viable. The fraction of each feedstock type in the blends were optimised with corresponding increase in syngas generation within the range of 9 – 35 % and decrease in the required number of farms within the range of 30 – 57 %. The outcome of the study demonstrates that sustainable gasification of crop residues for minigrid electricity generation requires co-gasification of various residue types, valorisation of by-products and increase in the current feed-in-tariff rate in Ghana.

The development of an integrated GIS-based optimization framework for power generation from municipal solid waste-to-energy facilities

Waste-to-energy (WtE) is one of the municipal solid waste (MSW) management pathways that can reduce waste volumes while recovering energy. There has been considerable focus on using MSW for energy production; however, there are few integrated assessments of the optimal location and scale of the conversion of MSW to energy. This research develops a novel framework that integrates the analysis of candidate sites for MSW gasification facilities using a geographical information system (GIS) through a multi-criterion decision-making (MCDM) model with a mixed-integer linear programming (MILP) model to determine optimal scale and location. The most suitable candidate locations were identified through a GIS-based location-allocation analysis. A MILP model integrated with GIS was then used to determine the minimum per-unit electricity production costs by optimizing the numbers, locations, and sizes of the proposed WtE and preprocessing facilities. The key inputs to the optimization model are actual road and railway transportation distances, WtE gasification and preprocessing facility capital and installation costs, operation and maintenance costs, gate fee and tipping fees (the fee for disposal of ash at the landfill), and the municipal guidelines. The proposed integrated framework was applied in a case study for Alberta, a western province in Canada. The results indicate that at a 10% rate of return, electricity production is cost-competitive with current electricity prices. The per-unit cost of electricity production (COEP) was found to be only 16.14 $/MWh when the gate fee was treated as a revenue component. The optimal plant location was in Edmonton and the optimum plant size was 175 MW. Sensitivity and uncertainty analysis was conducted to understand the critical input parameters that impact the COEP. The results indicate that the COEP is most sensitive to changes in tipping fees, plant efficiency, capital cost, discount rate, and transportation cost. The developed framework is critical for investment decisions and policy development, and it can be applied globally with adjustments to data and assumptions.

Profitability of Alternative Battery Operation Strategies in Photovoltaic Self-Consumption Systems under Current Regulatory Framework and Electricity Prices in Spain

The decreasing costs of solar photovoltaic (PV) technology have led to an exponential growth in the use of PV self-consumption systems. This development has encouraged the consideration of battery energy storage systems (BESS) as a potential means of achieving even more independence from the fluctuating grid electricity prices. As PV technology and energy storage costs continue to decline, both technologies will likely play an increasingly important role in the renewable energy sector. The profitability of batteries in PV self-consumption systems is largely influenced by the price of consumed electricity and the price at which surplus energy is remunerated. However, strategies in PV-BESS self-consumption systems typically do not take electricity prices into consideration as a variable for decision making. This study simulates and analyzes battery operation strategies that take into account electricity prices. The simulations are performed using real industrial consumption data and real electricity prices and tariffs, they cover the entire lifespan of the batteries, and include aging and degradation due to use and cycling. A techno-economic model is used to evaluate the advantages of incorporating these battery operational strategies into an actual PV-BESS system. The results demonstrate that the proposed strategies enhance the savings that batteries can provide.

Optimization of alkaline electrolyzer operation in renewable energy power systems: A universal modeling approach for enhanced hydrogen production efficiency and cost-effectiveness

This study presents a comprehensive analysis of an Alkaline Water Electrolysis System (AWES) for hydrogen production, focusing on thermal balance, operating conditions, efficiency, and lifecycle cost. A thermal balance model was developed and further refined using machine learning techniques based on experimental data, to accurately calculate electrolysis power, cooling requirements, and temperature maintenance, enabling cost-effective operation. This study provides insights for optimizing AWES performance and economic feasibility in hydrogen production. Selecting appropriate operating conditions considering current density, inlet temperature, and electricity price is crucial. Implementing these optimizations improves energy efficiency, reduces lifecycle hydrogen production costs, and enables integration with renewable energy systems.

Techno–economic analysis of fuel cell powered urban air mobility system

This study verified the technological and economic feasibility of converting urban air mobility (UAM) to a fuel cell–battery hybrid propulsion system from an existing battery–only propulsion system. The battery–fuel cell hybrid propulsion UAM was conceptually designed through reverse engineering and redesigned of the existing battery–only propulsion UAM. Under various design conditions, the economic feasibility of the hybrid propulsion system was verified through life cycle cost (LCC) analysis. Hybrid propulsion UAMs designed with appropriate hybridization ratios had 10% lower life cycle costs than battery-only propulsion UAMs. In particular, this cost–saving effect was more noticeable when UAM's flight distance became longer. The life cycle cost increased proportionally as the number of UAM passengers increased, but was relatively unrelated to energy storage technology improvements. Considering the current electricity and hydrogen price changes, the economic feasibility of fuel cell–battery hybrid UAM is expected to continue to improve in the future compared to batteries alone.

Residents' willingness to pay for renewable electricity can bridge the gap in financing for renewable electricity development in China

The current state in China is characterised by an increased demand for renewable electricity due to energy shortage and emission reduction targets. This study utilises the contingent valuation method (CVM) to investigate provincial residents' willingness to pay (WTP) for renewable electricity and employs the geographically weighted regression (GWR) model to analyse the spatial heterogeneity of influencing factors. The average WTP for renewable electricity among Chinese residents is 0.85 yuan/kWh, surpassing the current electricity price of 0.5 yuan/kWh. Reducing air pollution and the occurrence of haze is prioritised by residents (66.89%), followed by saving fossil energy and avoiding energy crises (10.09%), and reducing carbon emission and mitigating climate change (22.04%). Chinese residents pay more attention to the immediate impacts of renewable electricity on personal well-being and quality of life. Factors such as economic status, education background, air quality, health concerns, and environmental crisis awareness significantly influence WTP, with spatial disparities further compounding these effects. Sensitivity to economic level and air quality was observed in the southeast, while the southwest showed sensitivity to air quality, and the northwest exhibited sensitivity to environmental awareness. These findings suggest that residents' adoption of renewable electricity could partially alleviate China's funding gap in this sector. Recognising the factors that shape WTP provides a strategic pathway to enhance residents' financial support for renewable electricity initiatives.

Research on spot market price forecasting method considering the electricity‐purchase gain for demand side

AbstractThe clearing price in electricity spot market is an important reference guiding market participants to purchase energy. Current electricity price forecasting methods mainly focus on improving numerical accuracy, and the need to optimize economic benefits is ignored. However, higher numerical precision sometimes leads to lower electricity‐purchase gain. To deal with that, this paper proposes a price forecasting method that optimizes economic benefits together with numerical accuracies. A revenue‐optimizing term evaluating the relationship between the predicted price and the cost reference price is introduced to the loss function of the prosumers’ forecasting model. A sequence comparison neural network structure is proposed and added to consumers’ model, so the forecasting model is trained by also considering price trend. By co‐optimizing numerical precision and electricity‐purchase gain, the prediction is more conducive to reducing the cost of purchasing power. Price data in actual electricity market are used to verify the feasibility and improvement of the proposed method.

Performance evaluation and economic feasibility of a PAFC-based multi-energy hub system in South Korea

In this study, a MW-scale fuel-cell-based multi-energy hub system is simulated to maximize microgrid flexibility. The system was designed to deliver electricity, heat, and H2 with a high energy efficiency, which can be realized through the integration of the exothermic phosphoric acid fuel cell and endothermic turboexpander generator modules. To extract additional useful work during the depressurization process in the natural gas supply chain, this multi-energy system is currently under construction on a pilot basis in South Korea. Based on a natural gas flow rate of 28,000kg/h, we analyze the performance of the system and its economic effects under different load demands and operating conditions. The system simulation results show that the total electrical power generated by the turboexpander generator and phosphoric acid fuel cell modules is approximately 3.395–3.539MWe, while the H2 yield is 19.94–40.00kg/h. In addition, an economic assessment of the multi-energy hub system is conducted based on the current natural gas, electricity, and H2 prices in South Korea. Assuming a life span of 20 years for the turboexpander generator and phosphoric acid fuel cell modules, the payback period is estimated to be between 7.09 and 10.05 years.

Design of a Reverse Electrodialysis Plant for Salinity Gradient Energy Extraction in a Coastal Wastewater Treatment Plant.

The chemical potential difference at the discharge points of coastal Wastewater Treatment Plants (WWTPs) uncovers the opportunity to harness renewable salinity gradient energy (SGE). This work performs an upscaling assessment of reverse electrodialysis (RED) for SGE harvesting of two selected WWTPs located in Europe, quantified in terms of net present value (NPV). For that purpose, a design tool based on an optimization model formulated as a Generalized Disjunctive Program previously developed by the research group has been applied. The industrial scale-up of SGE-RED has already proven to be technically and economically feasible in the Ierapetra medium-sized plant (Greece), mainly due to a greater volumetric flow and a warmer temperature. At the current price of electricity in Greece and the up-to-date market cost of membranes of 10 EUR/m2, the NPV of an optimized RED plant in Ierapetra would amount to EUR117 thousand operating with 30 RUs in winter and EUR 157 thousand for 32 RUs in summer, harnessing 10.43 kW and 11.96 kW of SGE for the winter and summer seasons, respectively. However, in the Comillas facility (Spain), this could be cost-competitive with conventional alternatives, namely coal or nuclear power, under certain conditions such as lower capital expenses due to affordable membrane commercialization (4 EUR/m2). Bringing the membrane price down to 4 EUR/m2 would place the SGE-RED's Levelized Cost of Energy in the range of 83 EUR/MWh to 106 EUR/MWh, similar to renewable sources such as solar PV residential rooftops.

Promoting the Flexibility of Thermal Prosumers Equipped with Heat Pumps to Support Power Grid Management

The increasing share of renewable energy sources in energy systems will lead to unpredictable moments of surplus/deficit in energy production. To address this issue, users with heat pumps can provide support to power grid operators through flexible unit operation achieved via Demand Response programs. For buildings connected to low-temperature heating networks with ensured third-party access, further room for flexibility can be explored by investigating the production of surplus heat that can be sold to the network. A key aspect lies in the identification of the energy pricing options that could encourage such flexible operation of a heat pump by “thermal prosumers”. To this aim, the present study investigates the impact of ad hoc variations in the electricity purchasing price through discounts or penalties included in the “network cost” component of the price on cost-effective operation of a heat pump connected to the thermal network. To discuss the effects of different pricing options in terms of increased flexibility, an office building located in Italy and equipped with a high-temperature heat pump is adopted as the case study. A heuristic profit-oriented management strategy of the heat pump is assumed, and dynamic simulations are performed. The results indicate that at current electricity prices, the heat pump operation is profitable both when supplying the heat to meet the building’s requirements and when producing surplus heat for sale to the thermal network. In addition, it is revealed that the penalties applied to the electricity purchasing price are effective in encouraging changes in the heat pump operation strategy, reducing its average production (the building increasingly relying on buying heat from the network) and the associated electricity consumption by 46.0% and 79.7% in the “light” and “severe” local power deficit scenarios, respectively.

Implication of electricity taxes and levies on sustainable development goals in the European Union

The current high electricity prices in the European Union (EU) are in part due to the high electricity taxes. United Nations’ Sustainable Development Goals (SDGs) Agenda with its global vision of attaining sustainable development especially seeks “to ensure universal access to affordable, reliable and modern energy services” (SDG 7). We investigate the synergy and trade-off effects of electricity taxes on sustainable development goals (SDGs) for the EU. Using panel data and panel vector autoregressive estimation approach, we find that higher household electricity taxes reduce both carbon emission and unemployment. Higher levels of industry electricity taxes, increase responsible production and consumption (SDG12) and reduces unemployment (SDG8). Furthermore, there is evidence for a strong synergy effect between electricity taxes, unemployment and carbon emission but a trade-off between tax and SDG9 (innovation and sustainable infrastructure). The taxes contribute more to the future variation of unemployment and responsible production and consumption in the EU, but these contributions are much larger for the industry as compared to the household sector. Our results confirm the double-dividend hypothesis, which implies that the policymakers can achieve environmental goals with higher electricity taxes, especially on household electricity. In the industrial sector, our findings suggest that there is a need for tax reform, to encourage innovation and adopt production processes that are less polluting to the environment.