Carbon Quota and Efficiency Power Plants Implementation Decision

Abstract

Efficiency Power Plant (EPP) is a package of power demand side projects with zero emission, zero pollution and other advantages. In the process of implementing EPP, enterprises not only save electricity, but also reduce carbon emissions, while meanwhile increase the cost of R&D and equipment. Therefore, it is very necessary to study relationships between carbon quota and EPP implementation decision. In this paper, we build the profit functions of three different types of enterprises implementing EPP and analyze the relationship of main parameters, such as the probability of implement EPP, electricity saving, income, cost and carbon quota, and refine 11 relative results. At last we use 'Maple' software to verify the validity of the results, and carry out an empirical analysis of a case in China to prove the practicability of the relationship analysis results. The conclusion shows that under the carbon quota trading environment, enterprises should tend to implement EPP, and increase investment in R&D and acquisition of EPP, and need adjust the intensity of implementing EPP according to the change of carbon quota, unit carbon quota income, to obtain higher income.