Emission Price Research Articles

Low-Carbon Economic Dispatch for Integrated Energy System Through the Dynamic Reward and Penalty Carbon Emission Pricing Mechanism

The integrated energy system (IES) plays a key role in energy conservation and emission reduction. In order to realize the low-carbon economic dispatch of the IES, current studies usually utilize the fixed and the ladder-type pricing mechanism-based carbon emission unit cost (CEUC) in the optimal dispatch model. However, those mechanisms fail to take carbon emissions levels of the system into account, and the relevant parameters, such as the interval length, are hard to set. In order to tackle this challenge, a CEUC model with a dynamic reward and penalty pricing mechanism (DRPPM) is constructed. And then an optimal dispatch model to minimize the comprehensive operation cost, including the carbon emission cost, the energy purchasing cost, and the equipment operation cost, is proposed. At last, an actual electricity–heat–cooling–gas IES is employed to analyze the impact of parameters of the CEUC model on the dispatch.

Capitalization and Capital Return in Boreal Carbon Forestry

In this paper, an attempt is made to determine an intangible capitalization premium based on an expected further value increment of forest stands. Such premium cannot be determined through exponential interpolation. Firstly, any discount rate depending on maturity proposes clearcuttings soon after thinning as a computational artifact. Secondly, exponential interpolation with a constant discount rate violates an internal consistency criterion as the rotation age increases. Omitting the intangible capitalization premium, the carbon stock of boreal forest can be increased in a variety of ways (albeit at the expense of a capital return rate deficiency). A small excess volume can be economically gained by increasing sapling density. Greater excess volume is best achieved by restricting thinnings. A large excess volume is best achieved by omitting thinnings. Regardless of the technique used, enhanced carbon storage requires financial compensation in terms of a carbon rent. With the present European emission prices, there is no financial difficulty in establishing such a carbon rent arrangement.

스마트 팜의 재생에너지 자가 소비 촉진을 위한 최적 포트폴리오 분석

The purpose of this study is to analyze the ways to expand the supply of renewable energy to large-scale facility farms and to derive policies to promote self-consumption of renewable energy for efficient use and operation of energy nationwide. This is ultimately intended to reduce power consumption for agriculture supplied from fossil fuel power plants. We assume three main technologies such as photovoltaic power generation, energy storage system(ESS), and air heat pump for smart-farm models, and the objective function and conditions for maximizing cost-benefit are analyzed through linear programming. Assuming several scenarios reflecting various conditions of REC price, CO₂ emission price, and agricultural electricity rate, which are the benefit factors of operators who installs renewable energy, we present some conditions for promoting self-consumption of renewable energy and emission price levels through simulation. The results of this study can contribute to increase the benefits of smart farm models with renewable energy installed and the efficiency of nationwide power system management.

Economical planning of fuel cell vehicle-to-grid integrated green buildings with a new hybrid optimization algorithm

Popularity of fuel cell electric vehicles (FCVs) is an important criterion for solving the global problem of reducing CO2 emissions. However, the overall cost of FCVs and hydrogen fuel production is relatively high, so FCV promotion is slow. Considering that FCVs have near-zero CO2 emissions and high endurance, which is suitable for vehicle-to-grid (V2G) systems, this study aims to analyze the economic potential of the fuel cell vehicle-to-grid (FCV2G) systems to promote FCVs to the highest level. For this purpose, a large-scale green building was first selected as the research target and an agent to provide V2G services for the power grid. Then, Monte Carlo method was used to simulate the vehicle visiting time. A discharge model was also developed. Considering CO2 emission price and self-elasticity coefficient of discharge price, an overall economic optimization model was presented. Then, the hybrid algorithm of competitive swarm optimization (CSO) and imperialist competitive algorithm (ICA) was applied to optimize the model, which not only led to definite results and reduced standard deviation, but also eliminated the weakness of the CSO, i.e., convergence speed and poor performance in some benchmark functions. The simulation results indicated the proposed algorithm had faster convergence and more accuracy in finding the optimal solution than other optimization algorithms. Moreover, the overall economic profit improved in the presence of FCVs. Finally, sensitivity analysis was performed on six parameters, including daily electricity price, battery cost, fuel cell cost, CO2 emission price, power grid carbon emission, and hydrogen cost. The results showed FCV2G system had high development potential as well as great economic profit increasing over time.

Carbon Emission Reduction and Pricing Decisions of Dual-Channel Closed-Loop Supply Chain with Fairness Concern Under Carbon Tax Policy

Considering a dual channel closed-loop supply chain composed of a manufacturer and a retailer, and the retailer establishes online direct channels, four Stackelberg game models are constructed to study the impact of carbon tax and different fairness concerns of supply chain members on the optimal strategies, such as carbon emission reduction level, recycling and pricing decisions etc. The results show that the fairness concerns of supply chain members does not affect the recycling decision of manufacturer, but increasing carbon tax will promote the manufacturer to recycle more used products to reduce carbon emissions through remanufacturing. When the retailer has fairness concern but the manufacturer ignores it, with the increase of the retailers' fairness concern, the online selling price, the retail price and the retailers' utility increase while the manufacturers' profit decreases. When the manufacturer considers retailers' fairness concern, there will be more carbon emissions in the supply chain. Manufacturer should pay attention to this fairness concern and take certain measures to prevent this behavior. Compared with fairness neutrality, whether one or both of supply chain members have fairness concerns, it will inhibit manufacturers' enthusiasm for carbon reduction investment. When both of them have fairness concerns, the higher the manufacturers' fairness concern, the lower the carbon emission reduction level is.

Emission Pricing and Capital Replacement: Evidence from Aircraft Fleet Renewal

Emission Pricing and Capital Replacement: Evidence from Aircraft Fleet Renewal

Сценарии трансформации: декарбонизация российской экономики

The paper presents a forecast of the structure of power sector in Russia in 2050 under various scenarios for the transformation of the energy system and the possible prices for greenhouse gas emissions. CO2 emissions in the power sector by 2050 can be 32.7% lower compared to 2020 in sustainable development scenario (SDS) with an average CO2 price of $27/t over the period. In this scenario, the capacity structure will shift in favor of an increase in the share of nuclear and gas generation with a reduction in coal generation. In the scenario of zero greenhouse gas emissions (Net Zero), the price of CO2 is 37% higher compared to the scenario of sustainable development ($37/t). The implementation of the latter scenario will reduce emissions in the power industry by 40% compared to 2020. The article gives recommendations for changing the economic policy that would accelerate the decarbonization of the Russian economy and identifi es key risks of decarbonization.

Behavioral Analysis of Port Green Emission Reduction and Pricing Strategy Under Market Competition Environments

Behavioral Analysis of Port Green Emission Reduction and Pricing Strategy Under Market Competition Environments

Forecasting day-ahead electricity prices: A comparison of time series and neural network models taking external regressors into account

The amount of renewable energies in electricity production has increased significantly in the last decade, resulting in more variability of the day-ahead electricity spot price. The Electricity Price Forecast (EPF) has to adapt to the new situation by applying flexible models. However, the numerous available forecasting methods differ widely, with no distinct candidate offering the best solution. Against this background, we conduct a comparative study of four different approaches to forecasting the German day-ahead electricity spot price. In addition to the prominent Seasonal Integrated Auto-Regressive Moving Average model ((S)ARIMA(X)) and the Long-Short Term Memory (LSTM) neural network models, we employ a Convolutional Neural Network LSTM (CNN-LSTM) and an extended two-stage multivariate Vector Auto-Regressive model (VAR) approach as hybrid models. For better performance, we include common external influences such as the consumer load, fuel and CO2 emission prices, average solar radiation and wind speed in our analysis. We analyse hourly data for twelve samples from October 2017 to September 2018. Each model is implemented to deliver price forecasts at three horizons, i.e., one day, seven days and thirty days ahead. While the LSTM model achieves the best forecasting performance on average, the two-stage VAR follows closely behind and performs exceedingly well for shorter prediction horizons. Further, we provide evidence that a combination of both forecasting methods outperforms each of the single models. This indicates that combining advanced methods could lead to further improvements in electricity spot price forecasts.

Carbon Taxes Implementation Policies: Global and European Dimensions

The objective of the research is to analyze the present framework of available carbon taxes worldwide as one of the contemporary methods for cost engineering of carbon dioxide emission. For the achievement of this objective two basic research tasks have been fulfilled: 1) the essence and framework of and the effects stemming from the application of the basic carbon dioxide pricing approaches (the Emissions Trading Systems, Carbon Taxes, Offset Mechanisms, Results Based Climate Finance and Internal Pricing of the carbon emissions) have been presented; and 2) the European Union dimension of the application of a new carbon tax has been discussed within the context of the Carbon border adjustment mechanism (the carbon border tax) of the European union. The research methods that have been used are comparative analysis, content analysis, elements of the retrospective analysis and generalizations of the ideas of main analytical documents in this field. The results of the research are generalizations and analyses providing solid ground for taking evidence-based decisions regarding future carbon taxes introduction at national and EU level as well as for addressing motivated recommendations towards the application of this type of taxes.

Assessing the Effects of Uncertain Energy and Carbon Prices on the Operational Patterns and Economic Results of CHP Systems

In the power and heat sectors, the uncertainty of energy and carbon prices plays a decisive role in the rationale for decommissioning/repurposing coal-fired CHP (combined heat and power) systems and on investment decisions of energy storage units. Therefore, there is a growing need for advanced methods that incorporate the stochastic disturbances of energy and carbon emission prices into the optimization process of an energy system. In this context, this paper proposes an integrated method for investigating the effects of uncertain energy and carbon prices on the operational patterns and financial results of CHP systems with thermal energy storage units. The approach combines mathematical programming and Monte Carlo simulation. The computational process generates feasible solutions for profit maximization considering the technical constraints of the CHP system and the variation of energy and carbon emission prices. Four scenarios are established to compare the operational patterns and economic performance of a CHP system in 2020 and 2030. Results show that in 2020, there is an 80% probability that the system’s annual profit will be less than or equal to €30.98 M. However, at the same probability level, the annual profit in 2030 could fall below €11.88 M. Furthermore, the scenarios indicate that the incorporation of a thermal energy storage unit leads to higher expected profits (€0.74 M in 2020 and €0.71 M in 2030). This research shows that coal-fired CHP plant operators will face costly risks and potentially greater challenges in the upcoming years with the increasing regulatory and financial pressure on CO2 emissions and the EU’s plan of phasing out fossil fuels from electricity and heat generation.

Carbon Emissions and Brazilian Ethanol Prices: Are They Correlated? An Econophysics Study

Brazil is one of the largest global producers and exporters of ethanol and in 2017 launched RenovaBio, a programme aiming to mitigate greenhouse gas emissions. In parallel to this domestic scenario, there is rapid growth in the world market of carbon production, as well as complex price relations between fossil and renewable energies becoming increasingly important in recent years. The present work aims to contribute to filling a gap in knowledge about the relationship between Brazilian ethanol and other relevant energy-related commodities. We use a recent methodology (Detrended Cross-Correlation Approach—DCCA—with sliding windows) to analyze dynamically the cross-correlation levels between Brazilian ethanol prices and carbon emissions, as well as other possible-related prices, namely: sugar, Brent oil, and natural gas prices, with a sample of daily prices between January 2010 and July 2020. Our results indicate that (i) in the whole period, Brazilian ethanol has significant correlations with sugar, moderate correlation with oil in the short term, and only a weak, short-term correlation with carbon emission prices; (ii) with a sliding windows approach, the strength of the correlation between ethanol and carbon emissions varies between weak and non-significant in the short term.

Synergies between Renewable Energy and Flexibility Investments: A Case of a Medium-Sized Industry

Climate and energy policies are tools used to steer the development of a sustainable economy supplied by equally sustainable energy systems. End-users should plan their investments accounting for future policies, such as incentives for system-oriented consumption, emission prices and hydrogen economy, to ensure long-term competitiveness. In this work, the utilization of variable renewable energy and flexibility potentials in a case study of an aggregate industry is investigated. An energy concept considering PV and battery expansion, flexible production, fuel cell electric trucks (FCEV) and hydrogen production is proposed, and analysed under expected techno-economic conditions and policies of 2030 using an energy system optimization model. Under this concept, total costs and emissions are reduced by 14% and 70%, respectively, compared to the business-as-usual system. The main benefit of PV investment is the lowered electricity procurement. Flexibility from schedulable manufacturing and hydrogen production increases not only the self-consumption of PV generation from 51% to 80% but also the optimal PV capacity by 41%. Despite the expected cost reduction and efficiency improvement, FCEV is still not competitive to diesel trucks due to higher investment and fuel prices, i.e., its adoption increases the costs by 8%. However, this is resolved when hydrogen can be produced from own surplus electricity generation. Our findings reveal synergistic effects between different potentials and the importance of enabling local business models, e.g., regional hydrogen production and storage services. The SWOT analysis of the proposed concept shows that the pursuit of sustainability via new technologies entails new opportunities and risks. Lastly, end-users and policymakers are advised to plan their investments and supports towards integration of multiple application, consumption sectors and infrastructure.

Assessing Urban Metabolism through MSW Carbon Footprint and Conceptualizing Municipal-Industrial Symbiosis—The Case of Zaragoza City, Spain

This paper proposes a holistic vision of the urban metabolism (UM), viewing the city as a subsystem within an industrial ecosystem (IE) in which municipal-industrial symbiosis is essential to achieve sustainability goals. For this purpose, the metabolism of a large Spanish city, Zaragoza, was studied by analyzing the main fractions of its MSW. A methodology based on carbon footprint (CF) was developed to analyze the environmental impact—in terms of CO2—of the influence of households’ behavior, the City Council’s strategies, and the main MSW fractions. Zaragoza’s IE represents a footprint of 931,250 CO2 tons for the fractions studied, of which 438,000 CO2 tons are due to organic fraction, 180,371 to plastics and 154,607 to paper and cardboard, which are the three most significant contributors. If households selectively separated 100% of their waste, the footprint would drop to 648,660 tons of CO2. Furthermore, monetary savings were quantified through the CO2 emissions price. The proposed methodology accounts for the CF of the whole IE, not just the city. Moreover, it enables the creation of Sankey diagrams to visualize the distribution of emissions of each subsystem, highlighting the importance of cooperation between the city and its recycling industries to reduce its CF.

Pricing and scheduling of barge hinterland transportation service for inbound containers

Barge hinterland transport is playing an increasingly important role in freight transport industry through reducing carbon emission, relieving traffic congestion, and providing high capacity and reliable transport service. This paper studies the barge service pricing and scheduling problem in a hinterland transport system under multiple planning horizons. The problem is modeled as a Stackelberg game with the hinterland container operator as the leader and consignees as followers. Counter intuitively, we find that it is optimal for the hinterland container operator to charge the barge service higher than the trucking service when the sea terminal’s free storage time is short. High barge service price could still attract consignees because long transportation time by barge benefits consignees by reducing their storage costs at the inland terminal. We also find that increasing carbon emission price could not reduce the emission quantity when the shipping quantity is high.

Technical and Economic Analysis of Low-Emissions Modernization of Existing Heating Plants in Poland

An analysis is performed with regards to technologically outdated heating plants operating in many areas where fossil fuels such as coal and gas are utilized, in order to consider the alternatives of their modernization. By application of a chart using a variety of alternatives, the economic feasibility of executing two types of modernization of heating plants are explored: a single-fuel gas–steam CHP plant and a coal-fired heating plant to a coal-fired CHP plant with a condensing turbine. This study demonstrates how the selection of modernization technology is affected, in terms of profitability, by the value and variability in time of the price relationships between energy carriers, rapidly growing charges related to CO2 emission allowances, and costs depending on other pollutant emissions that originate from the operation of electricity and heat sources powered by fossil fuels. In both technical cases of modernization, lower prices of energy carriers coupled with CO2 emissions allowances lead to higher prices of electricity that can be sold as additional products following this modernization, and consequently, the specific cost of heat production in the repowered heat sources is lowered. The calculations were performed by the application of models of heating plant modernization applying continuous time notations, which offer the determination of the most suitable time of initiation of this modernization. Such relationships would be difficult to describe in the case of the use of traditional discrete models. In the case of a simultaneous increase in the prices of all main factors affecting the cost of heat generation, such as the price of gas, electricity and CO2 emissions, the fastest modernization of the heating plant to single-fuel gas–steam CHP provides the possibility of the best economic performance.

Analysis of sales and financing modes in a green platform supply chain with a capital-constrained manufacturer

PurposeThe purpose of this paper is to investigate the optimal operational strategies in a green platform supply chain and provide suggestions on the selection of sales and financing modes for the capital-constrained manufacturer.Design/methodology/approachThis study combines different sales channels with financing modes and investigates three sales-financing modes, i.e. traditional sales-prepayment financing (TSPF), traditional sales-bank financing (TSBF) and online sales e-retailer financing (OSEF). By establishing and comparing Stackelberg game models of these sales-financing modes from the perspectives of economy, environment and social welfare, the optimal strategies of emission reduction, financing, pricing and service improvement are obtained.FindingsThe results suggest that as the commission rate increases to a certain level, a threshold of the cost coefficient of emission reduction can be found such that the manufacturer should choose OSEF below this threshold and TSBF above this threshold. OSEF is Pareto optimal when this cost coefficient is low, and this mode can lead to the highest social welfare when the platform loan interest rate is relatively low. The Pareto areas in TSBF and OSEF enlarge as the default coefficient decreases.Practical implicationsThese results can provide operational insights on how to select sales channels and financing modes when manufacturer faces financial constraints in emission reduction.Originality/valueThis paper combines different sales and financing modes to study their comprehensive influence on the decision-makings of chain members and the resulting performance of economy, environment and social welfare.

Evolutionary game theoretic study on the coordinated development of solar power and coal-fired thermal power under the background of carbon neutral

In recent years, China has been promoting the process of carbon neutral by establishing carbon exchanges (CEs) and implementing relevant carbon emission reward and punishment policies. This study proposes a partnership of the CE, solar power plant (SPP) and coal-fired thermal power plant (TPP). Based on the tripartite evolutionary game model and current policies of China, the evolutionary processes are simulated and discussed. The results reveal that stable states can be achieved under different partnership modes. Effect evaluation results of typical parameters on the three participants show that on the premise of ensuring the participations of CE and SPP, properly reducing the prices of carbon emission share sold to the TPP will strengthen the participation willingness of TPP. The relatively reasonable selling price ranges of carbon emission share of the CE and SPP sold to the TPP are 6.0∼6.2 $/t and 5.3∼5.5 $/t, respectively. Higher zero carbon emission reward and higher carbon tax can strengthen the participation willingness of TPP and make the TPP achieve the carbon neutral. This study can provide a reference for the government and related industries to promote the carbon neutral development as well as the coordinated development of solar power and coal-fired thermal power.

Distributional effects of emission pricing in a carbon-intensive economy: The case of Poland

We assess the distributional impact of introducing a carbon tax in a small open economy, using the case of Poland. We use a dynamic general equilibrium model with a search mechanism in the labour market, soft-linked to a microsimulation model based on household budget survey data. We evaluate the impact on various income groups and on inequality. We account for four key channels: the direct (energy) and indirect (other goods) price effects, behavioural adjustment of consumption, and changes in labour income. We consider three of ways to recycle the carbon tax revenue: lump-sum transfer, energy price subsidies, and labour tax reduction. We find that the distributional effects depend on the recycling of revenues. Using them to reduce labor taxation attenuates the negative effect of carbon tax on GDP and employment but increases inequality compared to a lump-sum transfer to households. This finding highlights the trade-off between efficiency and equity. Our results could be relevant for other countries producing fossil fuels, such as South Africa, Germany, or Australia.

3E Analysis of the Effect of Different Type of Fans on Cooling Performance Applied to an Industrial Deep Freezer

In this study, two different industrial refrigerators were designed, manufactured and tested to analyze the impact of different types of fans (Type 1 and Type 2) used in industrial cooling systems on the performance of the cooling system. In order to test the fan performance and airflow effects, two axial fan configurations with different structures and different motor technology (EC and shaded-pole induction) were tested in two separate industrial refrigerator test rooms in accordance with TS EN ISO 23953-2 standards. R290 (Propane) was used as a refrigerant in the systems. The average temperature and relative humidity values of the environment where the experiment was conducted were measured as 25 °C and 60 % (Class 3), respectively. During the experiments, the total of 51.71 kWh energy was consumed in system 1, while the total of 54.22 kWh energy was consumed in system 2 and the difference between the energy consumption of the two systems was calculated as 4.85%. The average temperatures of the inlet and outlet of the evaporator of the system 1 and 2 were -21.57 °C, -18.97 °C and -23.43 °C, -20.94 °C, respectively. The average refrigerant temperatures for the system 1 and 2 were calculated as -24.65 °C, -26.44 °C, respectively. While the average coefficient of performance value of the type 1 system was 1.74, it was calculated as 1.54 for the type 2 cooling system. The average second-law efficiencies for the two cooling systems were calculated as 30.85 % and 29.81 %, respectively. In addition, the environmental economy analysis was carried out using the amount of CO2 that was prevented from emitting and the CO2 emission price calculated accordingly.