Abstract:In this article a bottom-up approach to quantification of air pollution externalities from electricity generation is used to show that market-based instruments are not very effective in internalizing these external costs in six CEE countries. Although governments in CEE countries have regulated air emissions by imposing strict command-and-control measures, most of them have also introduced air emission charges and more recently taxes on electricity. We find however that the level of internalization by these tw… Show more
“…See [10,32] for the details). The IPA is an analytical procedure examining the sequence of processes through which polluting emissions result in damages.…”
Abstract:In 2015, a 24-year-long prohibition of coal mining within some territories in the North Bohemia coal basin was lifted and as a consequence mining a part of the brown coal reserves might well be resumed. This paper analyses the impacts of maintaining the ban versus three options for a less environmentally stringent policy on the Czech energy system; fuel-and technology-mix, the costs of generating energy, emissions and related external costs up to 2050. We find that overall the effect of lifting the ban, on coal usage, air pollutant emissions and hence externalities is rather small, up to 1-2% compared to the level of keeping the ban. The small difference in the impacts remains even if changes in the prices of fossil fuels and European Emission Allowances or different development in nuclear power usage are assumed. In fact, changing these assumptions will result in more pronounced differences in the impacts than the four policy options might deliver. Maintaining the ban would not achieve the European Energy Roadmap 2050 target and the newly adopted policy and the other two counter-environmental proposals would miss the 80% reduction target to an even greater degree. The environmental and external health costs attributable to emissions of local air pollutants stemming from power generation are in a range of €26-32 billion over the whole period and decline from about 0.5% of gross domestic product in 2015 to 0.1% in 2050.
“…See [10,32] for the details). The IPA is an analytical procedure examining the sequence of processes through which polluting emissions result in damages.…”
Abstract:In 2015, a 24-year-long prohibition of coal mining within some territories in the North Bohemia coal basin was lifted and as a consequence mining a part of the brown coal reserves might well be resumed. This paper analyses the impacts of maintaining the ban versus three options for a less environmentally stringent policy on the Czech energy system; fuel-and technology-mix, the costs of generating energy, emissions and related external costs up to 2050. We find that overall the effect of lifting the ban, on coal usage, air pollutant emissions and hence externalities is rather small, up to 1-2% compared to the level of keeping the ban. The small difference in the impacts remains even if changes in the prices of fossil fuels and European Emission Allowances or different development in nuclear power usage are assumed. In fact, changing these assumptions will result in more pronounced differences in the impacts than the four policy options might deliver. Maintaining the ban would not achieve the European Energy Roadmap 2050 target and the newly adopted policy and the other two counter-environmental proposals would miss the 80% reduction target to an even greater degree. The environmental and external health costs attributable to emissions of local air pollutants stemming from power generation are in a range of €26-32 billion over the whole period and decline from about 0.5% of gross domestic product in 2015 to 0.1% in 2050.
“…Dopady skleníkových plynů na změnu klimatu (Havránek et al 2015) jsou internalizovány skrze systém emisního obchodování EU ETS. Zahrnutí emisí klasických polutantů a s nimi spojených externalit (Ščasný et al 2015;Máca et al 2012) by výrazně přesáhlo současné technicko-ekonomické pojetí našeho modelu. Dále jsou předpokládány dokonalá konkurence mezi jednotlivými účastníky trhu a existence jediného nezávislého OPS, který optimalizuje systémové proměnné pro celou oblast najednou (Kunz 2013).…”
The Impact of Renewable Energy Sources on the Czech Electricity Transmission SystemThis paper provides the first academic economic simulation analysis of the impact of increase in predominantly German wind and solar energy production on the Czech electricity transmission network. To assess the exact impact on the transmission grid, updated state-of-the-art technoeconomic model ELMOD is employed. Two scenarios for the year 2025 are evaluated on the basis of two representative weeks. The first scenario is considered as baseline and models currently used production mix. The second scenario focuses on the effect of German Energiewende policy on the transmission networks as expected in 2025. The results confirm that in the context of Central Europe, higher feed-in of solar and wind power increases the total transport of electricity between the transmission system operator areas as well as the average load of lines and volatility of flows. Also, an increase in number of critical high-load hours is observable. Taking into account only the Czech transmission system, considerable rise both in transported volume and volatility are observed only on border transmission lines, not inside the country. Moreover, our qualitative analysis shows that all these mentioned effects are strengthened by the presence of German--Austrian bidding zone.
“…Current research suggests that their levels may be far from optimal: In some cases the tax rate is too high compared to the actual external damages (Parry and Small, 2005), and in others too low (e.g. Máca et al 2012;Somanathan et al 2014). The coverage of different sectors also varies.…”
Abstract.The implementation of decarbonization policies depends crucially on the public's willingness to pay for them. We use stated preference methods to investigate the public's preferences for such policies. We ask three research questions. First, does the willingness to pay (WTP) for each ton of CO 2 emissions reductions depend on the policies and on individual characteristics of the respondents? Second, how extensive is the variation associated with these factors? Third, what factors affect support for or opposition to a carbon tax? Based on the responses to discrete choice experiments from a sample of Italians, we find that the WTP per ton of CO 2 ranges between € 6 and 130, depending on whether the public program is based on taxes, incentives, informationbased approaches or standards. Further allowing for individual characteristics of the respondents, such as gender or education, and knowledge of climate change, results in a 300% change in WTP, holding the policy instrument the same. We conclude that the variation associated with the policy instrument is approximately of the same order of magnitude as that associated with individual characteristics of the respondents.
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