dc.contributor.author | Renner, Marie | |
dc.date.accessioned | 2014-03-27T13:50:25Z | |
dc.date.available | 2014-03-27T13:50:25Z | |
dc.date.issued | 2014 | |
dc.identifier.uri | https://basepub.dauphine.fr/handle/123456789/12983 | |
dc.language.iso | en | en |
dc.subject | Politique de l'environnement | en |
dc.subject | Fiscalité écologique | en |
dc.subject | Taxe sur le dioxyde de carbone | en |
dc.subject | Captage et stockage du dioxyde de carbone | en |
dc.subject | Gaz à effet de serre | en |
dc.subject | Réduction | en |
dc.subject.ddc | 333 | en |
dc.subject.classificationjel | Q58 | en |
dc.subject.classificationjel | Q56 | en |
dc.subject.classificationjel | Q53 | en |
dc.title | Carbon prices and CCS Investment:comparative study between the European Union and China | en |
dc.type | Document de travail / Working paper | |
dc.contributor.editoruniversityother | University Paris Ouest Nanterre La Défense;France | |
dc.description.abstracten | As policy makers assess strategies to reduce greenh
ouse gas emissions (GHG), they need to know the
available technical options and the conditions unde
r which these options become economically attractive. Carbon Capture and Storage (CCS) techniques are widely considered as a key option for
climate change mitigation. But integrating CCS tech
niques in a commercial scale power plant adds significant costs to the capital expenditure at the start of the project and to the operating expenditure
throughout its lifetime. Its additional costs can b
e offset by a sufficient CO2
price but most markets have
failed to put a high enough price on CO2 emissions: currently, the weak Emission Unit Allowances price
threatens CCS demonstration and deployment in the European Union (EU). A different dynamic is rising
in China: a carbon regulation is setting up and CCS
techniques seem to encounter a rising interest as suggest their inclusion in the 12th Five-Year Plan and the rising number of CCS projects
identifies/planned. However, there are very few in-depth techno-economic studies on CCS costs. This study investigates two related questions: how much is the extra-cost of a CCS plant in the EU in comparison with China? And then, what is the CO2 price beyond which CCS power plants become more
profitable/economically attractive than classic power plants, in the EU and in China? To answer these
questions, I first review, analyze and compare publ
ic studies on CCS techniques in order to draw an objective techno-economic panorama in the EU and China. Then, I develop a net present value (NPV) model for coal and gas plants, with and without CCS,
in order to assess the CO2
price beyond which CCS
plants become the most profitable power plant type.
This CO2 value is called CO2 switching price. I also
run some sensitivity analyses to assess the impact of different parameter variations on this CO2 switching price.
I show that CCS power plants become the most profita
ble baseload power plant type with a CO2 price higher than 115 €/t in the EU (offshore transport and storage costs) against 33 €/t (onshore
transport and storage costs) or 47 €/t (offshore tr
ansport and storage costs) in China. When the CO2 price is high enough, CCS gas plants are the most profitable power plant type in the EU whereas these are CCS coal plants in China. Through this study, I
advise investors on the optimal power plant type
choice depending on the CO2 market price, and suggest an optimal timing for CCS investment in the EU and China. | en |
dc.publisher.name | Université Paris Dauphine | en |
dc.publisher.city | Paris | en |
dc.identifier.citationpages | 28 | en |
dc.relation.ispartofseriestitle | Les Cahiers de la Chaire Economie du Climat | en |
dc.relation.ispartofseriesnumber | 2014-02 | en |
dc.subject.ddclabel | Economie de la terre et des ressources naturelles | en |
dc.description.submitted | non | en |