Benjamin D. LEİBOWİCZ, Maria ROUMPANİ, Peter H. LARSEN

194235

Carbon Emissions Caps and the Impact of a Radical Change in Nuclear Electricity Costs

Carbon Emissions Caps and the Impact of a Radical Change in Nuclear Electricity Costs

In this study we analyze the impact of a radical change in nuclear electricity costs on the optimal electricity generation technology mix (EGTM) and constrain the value of information (VOI) on future nuclear costs. We consider three nuclear cost events and four carbon emissions caps. We develop a two-stage framework for energy-economic model MARKAL to eliminate foresight of future nuclear cost movements. We examine how the EGTM responds to these movements under alternative caps and analyze how these movements affect the cost of each cap. We define the expected savings from perfect foresight (ESPF), an upper bound on the VOI. We found that with current technologies, carbon mitigation that does not rely heavily on nuclear electricity is economically insensible. The Strong Cap is extremely costly because it restricts flexibility to respond to cost signals in choosing among technologies. The ESPF is highest under the Medium Cap by a substantial margin.

Keywords:

MARKAL nuclear electricity, value of information, foresight,

International Journal of Energy Economics and Policy-Cover

Başlangıç: 2011
Yayıncı: İlhan ÖZTÜRK

Arşiv

Sayıdaki Diğer Makaleler

Causality Relationship between GDP and Energy Consumption in Georgia, Azerbaijan and Armenia

Huseyin KALYONCU, Faruk GÜRSOY, Hasan GÖCEN

The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran

Akbar KOMİJANİ, Nadiya Gandali ALİKHANİ, Esmaeil NADERİ

Hypothetical Market Familiarity and the Disconnect Between Stated and Observed Values for Green Energy

The Effect of Gasoline Price on Economic Sectors in Nigeria

Philip İfeakachukwu NWOSA, Akinyemi Alao AJİBOLA

The Wind Employment in Spain (1995-2010): A Theoretical Approximation Applied to the Region of Galicia

Rosa Maria Regueiro FERREİRA, Xoan Ramón Doldán GARCİA

An Investigation of Some Hedging Strategies for Crude Oil Market

Andre Assis De SALLES

Modeling and Forecasting Energy Consumption in the Manufacturing Industry in South Asia.

Muslima ZAHAN, Ron S. KENETT

Carbon Emissions Caps and the Impact of a Radical Change in Nuclear Electricity Costs

Benjamin D. LEİBOWİCZ, Maria ROUMPANİ, Peter H. LARSEN

Intensity of Use Hypothesis: Analysis of Selected Asian Countries with Structural Differences

İsmail Oladimeji SOİLE

The Relationship Between Energy Consumption and Economic Growth: Evidence From A Structural Break Analysis For Turkey

Mustafa SAATCİ, Yasemin DUMRUL