2 Jurisdictions with carbon markets currently account for about 40% of global economic activity (GDP) 1. Linking these different carbon markets with the ultimate goal of establishing a global carbon market is seen by many as an integral part of the future climate regime, since it can increase the pool of mitigation options available, thereby reducing costs and allowing countries to increase the...

This paper proposes a real options model for evaluating the biomass power generation investment in China. The uncertainties in the market price of electricity, CO2 price and straw price are considered. Meanwhile the dynamic relationship between installed capacity and fuel cost, as well as the long-term reduction of subsidy are described. Two scenarios, i.e., with the carbon emission trading sch...

The climate change discussion in the framework of the Kyoto protocol has clearly emphasized the need for reliable methods to value projects targeted on reduction of greenhouse gases. Moreover, the recent carbon price development in the mandatory EU Emission Trading Scheme exhibits the insisting importance of accurate risk management when business is exposed to greenhouse gas emissions. In this ...

The Australian Government has proposed to introduce a policy that will impose a cost on greenhouse emissions (a carbon price). The mechanism, intended to start on 1 July 2012, is to commence with a government-fixed carbon price – $23 per tonne CO2-e in 2012–13 increasing by 5% per annum (2.5% in real terms) – which would continue for three years, before being converted into a market-based emiss...

a r t i c l e i n f o Shadow price is one of the most important pieces of information in environmental decision making. Two different approaches—namely, economic and engineering—have been applied to obtain the shadow price of undesirable outputs, while using different methodological backgrounds and perspectives. The current study proposes a new conceptual framework and an economic estimation mo...

generators’ risks Richard Green Institute for Energy Research and Policy University of Birmingham, Birmingham B15 2TT Tel: +44 121 415 8216 Email: [email protected] October 2007 Abstract Volatile fuel prices affect both the cost and price of electricity in a liberalized market. Generators with the price-setting technology will face less risk to their profit margins than those with costs that...

In this paper, we study the impact of carbon tax on carbon emission and retail price in a two-echelon supply chain consisting of a manufacturer and a retailer. Specifically, by adopting two types of contracts, i.e., the modified wholesale price (MW) and the modified cost-sharing contract (MS), supply chain coordination is achieved, which promotes the supply chain efficiency. Our study shows tha...

The current pricing mechanism for carbon in the EU, the EU emissions trading system, only covers 40 percent of emissions. Carbon taxation currently plays no role. The Commission has recently proposed to revise the energy tax system in the EU to include a carbon tax component. This paper evaluates the Commission proposal and considers the possible expansion of the EU carbon pricing base either b...