scholarly journals Carbon Tax on Three Fossil Fuels

2019 ◽  
Vol 4 (2) ◽  
pp. 130-142
Author(s):  
James Stodder
Keyword(s):  
Natural Gas ◽  
Carbon Footprint ◽  
Fossil Fuels ◽  
Fossil Fuel ◽  
Carbon Tax ◽  
Tax Burden ◽  
Vector Auto Regression ◽  
Price Instability ◽  
Gas Price ◽  
Auto Regression

Carbon pricing will make Natural Gas the last fossil fuel. As is well-known, the carbon footprint of Oil is half-again as large, and the footprint of Coal is twice as large as that of Gas. Price sensitivities also imply that Gas producers bear relatively little of the total tax burden. As a result of the smaller tax on Gas, structured vector auto-regression (SVAR) simulations of a carbon tax show demand for Oil falling, with a rush for natural Gas. These simulations show that a modest ($40 per metric ton) carbon tax can be introduced gradually, avoiding price instability and achieving greater substitution into Gas than a tax ‘shock.’

scholarly journals A Thermodynamic Analysis of Tubular SOFC Based Hybrid Systems

2001 ◽  
Author(s):  
A. D. Rao ◽  
G. S. Samuelsen
Keyword(s):  
Natural Gas ◽  
Gas Turbine ◽  
Hybrid Systems ◽  
Carbon Tax ◽  
Hybrid Plant ◽  
Cost Of Electricity ◽  
Efficiency Performance ◽  
Analysis Strategy ◽  
The University ◽  
Gas Price

The goals of a research program recently completed at the University of California, Irvine were to develop analysis strategy for Solid Oxide Fuel Cell (SOFC) based systems, to apply the analysis strategy to tubular SOFC hybrid systems and to identify promising hybrid configurations. A pressurized tubular SOFC combined with an intercooled-reheat gas turbine (SureCell™ cycle) is chosen as the Base Cycle over which improvements are sought. The humid air turbine (HAT) cycle features are incorporated to the Base Cycle resulting in the SOFC-HAT hybrid cycle which shows an efficiency of 69.05% while the Base Cycle has an efficiency of 66.23%. Exergy analysis identified the superior efficiency performance of the SOFC component. Therefore, an additional cycle variation added a second SOFC component followed by a low pressure combustor in place of the reheat combustor of the gas turbine of the SOFC-HAT hybrid. The resulting Dual SOFC-HAT hybrid has a thermal efficiency of 75.98%. The Single SOFC-HAT hybrid gives the lowest cost of electricity (3.54¢/kW-hr) while the Dual SOFC-HAT hybrid has the highest cost of electricity (4.02¢/kW-hr) among the three cycles with natural gas priced at $3/GJ. The Dual SOFC-HAT hybrid plant cost is calculated to be significantly higher because the fraction of power produced by the SOFC(s) is significantly higher than that in the other cases on the basis of $1100/kw initial cost for the SOFC. The Dual SOFC-HAT hybrid can only be justified in favor of the Single SOFC-HAT hybrid when price of natural gas is greater than $14/GJ or if a severe carbon tax on the order of $180/ton of CO2 is imposed while natural gas price remains at $3/GJ.

scholarly journals Catalytic Production of Jet Fuels from Biomass

Molecules ◽  
2020 ◽  
Vol 25 (4) ◽  
pp. 802 ◽  
Author(s):  
Manuel Antonio Díaz-Pérez ◽  
Juan Carlos Serrano-Ruiz
Keyword(s):  
Molecular Weight ◽  
Global Warming ◽  
Natural Gas ◽  
Heterogeneous Catalysts ◽  
Fossil Fuels ◽  
Fossil Fuel ◽  
Liquid Hydrocarbon ◽  
Jet Fuels ◽  
Renewable Source ◽  
The World

Concerns about depleting fossil fuels and global warming effects are pushing our society to search for new renewable sources of energy with the potential to substitute coal, natural gas, and petroleum. In this sense, biomass, the only renewable source of carbon available on Earth, is the perfect replacement for petroleum in producing renewable fuels. The aviation sector is responsible for a significant fraction of greenhouse gas emissions, and two billion barrels of petroleum are being consumed annually to produce the jet fuels required to transport people and goods around the world. Governments are pushing directives to replace fossil fuel-derived jet fuels with those derived from biomass. The present mini review is aimed to summarize the main technologies available today for converting biomass into liquid hydrocarbon fuels with a molecular weight and structure suitable for being used as aviation fuels. Particular emphasis will be placed on those routes involving heterogeneous catalysts.

scholarly journals Unconventionals in Europe: Best Practice vs. Worst Case - The Conflict Between Facts and Public Perception

2016 ◽  
Vol 23 (3) ◽  
pp. 377-386 ◽  
Author(s):  
Peter Burri
Keyword(s):  
Natural Gas ◽  
Public Perception ◽  
Human Error ◽  
Fossil Fuels ◽  
Fossil Fuel ◽  
Hydrocarbon Exploration ◽  
Negative Consequences ◽  
Rapid Improvement ◽  
Worst Case ◽  
The World

Abstract In spite of great progress in energy efficiency and in the development of renewable energy the world is likely to need significant amounts of fossil fuel throughout this century and beyond (the share of fossil fuels in the world mix has remained at about 86% of primary energy from 1990 to today). Gas, being the by far cleanest fossil fuel is the ideal bridging fuel to a world with predominantly renewable supplies. Thanks to the recent perfection of unconventional technologies there is no shortage of gas for this bridging function for at least the next 100-200 years. EASAC and several other European Institutions, notably the German Academy of Technical Sciences (acatech) have in the last few years carried out expert studies to assess the alleged environmental risks of unconventional hydrocarbon exploration and production. All these studies have, in agreement with other competent studies worldwide, come to the conclusion that there exists no scientific reason for a ban on hydraulic fracturing. With good practices, clear standards and adequate control the method causes no enhanced risks to the environment or the health of humans. Special attention has to be paid to the surface handling of drilling and fracking fluids. In Europe alone many thousand frac jobs have been carried out by the industry in the last 60 years without any severe accidents. The mishaps in North America have largely been the cause of unprofessional operations and human error. Especially in places with high air pollution, like many megacities of Asia, natural gas has to be seen as a unique chance to achieve a rapid improvement of the air quality and a significant reduction of CO2 emissions. This is also true for Europe where especially the use of domestic natural gas brings important benefits to the environment. The alternative to gas is in many regions of the world an increased consumption of coal, with all negative consequences.

scholarly journals Analysis of Carbon Tax on Selected European Countries: Does Carbon Tax Reduce Emissions?

2017 ◽  
Vol 5 (1) ◽  
pp. 29
Author(s):  
Ali Eren Alper
Keyword(s):  
Carbon Dioxide ◽  
Global Warming ◽  
Natural Gas ◽  
Carbon Dioxide Emissions ◽  
Fossil Fuels ◽  
Carbon Tax ◽  
Panel Data Analysis ◽  
Rapid Development ◽  
European Countries ◽  
Environmental Taxes

Since the first days of its existence, the humanity had been using natural resources to meet its needs. Especially along with the globalization period as a result of the Industrial Revolution and the rapid development of communication technologies within the last fifty years, the production has increased significantly in the world and has created negative effects on the environment. The leading adverse effects involve the emission of greenhouse gases and the global warming, which stem from the energy supply of fossil fuels as the main inputs of production. The global warming can be described as an increase in temperature worldwide. Irreversibility is the most important feature of the global warming. Therefore, in the absence of objective measures, the future costs would be much higher than the current ones. For this reason, governments need to take various measures to reduce the volume of emissions. The most important of these measures is carbon taxes. Carbon taxation encourages individuals to use fewer fossil fuels and to find new sources of energy by increasing the cost of using fossil fuels that cause carbon dioxide emissions through the price mechanism. To this end, the impacts of carbon tax levied in 18 selected European countries on economic growth, urbanization, natural gas and petroleum usage, and CO2 emissions are examined by panel data analysis for the 1995-2015 period. The analysis results indicate that a 1% increase in environmental taxes reduces carbon dioxide emissions by 0.9%. Furthermore, it is reported that a 1% increase in natural gas and petroleum consumption among the variables included in the analysis increased carbon dioxide emissions by 0.1% and 0.7%, respectively; while a 1% increase in urbanization reduced carbon dioxide emissions by 0.9%.

scholarly journals Carbon Leakage Along with the Green Paradox Against Carbon Abatement? A Review Based on Carbon Tax

2020 ◽  
Vol 20 (1) ◽  
pp. 25-44
Author(s):  
Sahin Akkaya ◽  
Ufuk Bakkal
Keyword(s):  
Interest Rates ◽  
Carbon Emissions ◽  
Fossil Fuels ◽  
Fossil Fuel ◽  
Carbon Tax ◽  
Relevant Literature ◽  
Carbon Leakage ◽  
Carbon Abatement ◽  
Green Paradox ◽  
Global Carbon

AbstractResearch background: Insufficient global cooperation in carbon pricing against global warming has the risk of global carbon emissions rise because of carbon leakage. The effect of a carbon tax on the present supply of fossil fuels is also valuable in regard to global carbon emissions.Purpose: The purpose of this study is to gain more insights into the effects of carbon leakage along with the green paradox on global carbon emissions by reviewing the relevant literature.Research methodology: We provide the problem linked to carbon leakage and the green paradox in the introduction. Then, the effects of carbon leakage and the green paradox on global carbon emissions are elaborated separately. Finally the mutual effects of carbon leakage and the green paradox are reviewed comprehensively.Results: It is seen that various factors like interest rates, fossil fuel extraction costs, the fossil fuel reserves to be discovered in the future and carbon tax incidence are equally important determinants in regard to global carbon emissions.Novelty: This study provides an insight into the mutual effects of carbon leakage and the green paradox on global carbon emissions by reviewing the primary literature in the field.

The impact of the Carbon Tax regime on the petroleum and gas industries

2012 ◽  
Vol 52 (1) ◽  
pp. 195
Author(s):  
Doug Young
Keyword(s):  
Natural Gas ◽  
Fossil Fuels ◽  
Carbon Tax ◽  
Clean Energy ◽  
Unit Price ◽  
Electricity Production ◽  
Reporting Scheme ◽  
Fixed Price ◽  
The Government ◽  
The Impact

The Clean Energy Act (CEA) and its related legislation received royal assent on 18 November 2011, ushering in a new era for the Australian industry, and for those who deal with it. Building on the 2007 National Greenhouse and Energy Reporting Scheme (NGERS), which mandates the measurement and reporting of greenhouse gas emissions and electricity production and consumption, the CEA imposes direct obligations on: individual industrial operations (facilities) that emit more than 25,000 tonnes of carbon dioxide, or its other equivalent greenhouse gases, from particular sources, in a year; suppliers of natural gas (at the point of last supply before the gas is burnt or otherwise used), for the emissions that will be generated when the gas is burnt; and, operators of land-fill facilities, such as local councils. While the primary emissions targeted by the scheme are produced by burning fossil fuels, they also include emissions such as the methane released when coal is mined. The obligations include the option of surrendering carbon units for each tonne of emissions, however, if this optional step is not performed, the mandatory payment of a tax, which far exceeds the cost of a unit, is enforced. The Australian Government will sell carbon units at a fixed price for the first three years, starting at $23, after which units will be auctioned for between $15 and the expected international unit price, plus $20. The supply of domestic units will be unlimited for the three fixed price years, but will be subject to a reducing cap in following years, consistent with the Government policy of reducing Australia’s emissions. The Government has created a monopoly for the supply of units for the first three years by prohibiting the use of overseas-sourced carbon units, and by only allowing 5% of the unit surrender requirements to be comprised of Australian generated carbon credits. Thereafter, for the first five of the flexible-charge years, only half the units can be sourced from overseas, with any apparent saving likely to be offset by the various taxes and charges applicable to the use of those units. Certain fuels will also be separately taxed. Entities, however, which acquire, manufacture or import fuels and would otherwise be entitled to a fuel tax credit, may be able to assume direct liability thus enabling them to acquire or manufacture fuel, free of the carbon tax component. Where the imposts will cause competitive disadvantage to industries that compete with entities from other countries that do not have similar imposts, some assistance is provided in the form of allocated units provided at no charge. Assistance is also available to coal-fired electricity generators, producers of liquefied natural gas, operators of gassy coal mines, and the steel industry (not discussed in this paper). This paper also explains, in detail, how liability is created, how to determine which entities are liable, the means of assigning liability to other entities, and the assistance available to various industries to help deal with the financial impact of the scheme on their operations. It also outlines the key concepts that underpin the scheme.

scholarly journals PARA ALÉM DA INÉRCIA DE AFLUÊNCIA

2017 ◽  
Vol 13 (1) ◽  
Author(s):  
John A. Nevin
Keyword(s):  
Global Warming ◽  
Delay Discounting ◽  
Fossil Fuels ◽  
Fossil Fuel ◽  
Carbon Tax ◽  
Greenhouse Gasses ◽  
History Of ◽  
Fossil Fuel Industry ◽  
Indefinite Future ◽  
Fuel Industry

Global warming poses unprecedented dangers to humankind, and it is a product of human activities: Production and consumption of fossil fuels, accompanied by steadily increasing levels of greenhouse gasses in the atmosphere.  Some of the predicted consequences of warming are already upon us; yet more catastrophic effects will be experienced in the future.  Two behavioral processes operate to maintain fossil fuel use: 1) Delay discounting studies suggest that relatively lesser-valued outcomes (e.g., driving private cars) that are available now are likely to be preferred to the value of a sustainable planet for all humankind, to be achieved in the indefinite future; and 2) ongoing fossil-fueled activities are likely to be highly persistent because of the long and rich history of reinforcement for individuals (e.g., comfort and convenience) and for the fossil-fuel industry as a whole (e.g., jobs and profits). One way to counter that persistence is to tax greenhouse gas emissions, which can shift current incentives away from fossil-fuel based energy toward renewables, even though the ultimate slowing of climate change may be remote.  Carbon-tax contingencies are similar to those employed to treat problem behavior; a successful example of this approach is described.Key words:  Global warming, fossil fuel consumption, carbon tax, delay discounting, behavioral momentum

AN INVESTIGATION OF CARBON TAXES AND TERMS OF TRADE IN A LARGE MACROECONOMETRIC MODEL

2021 ◽  
Vol 258 ◽  
pp. 47-65
Author(s):  
Dawn Holland ◽  
Ian Hurst ◽  
Amit Kara ◽  
Iana Liadze
Keyword(s):  
Global Economy ◽  
Fossil Fuels ◽  
Fossil Fuel ◽  
Econometric Model ◽  
Greenhouse Gas Emission ◽  
Carbon Tax ◽  
Terms Of Trade ◽  
Carbon Taxes ◽  
Gas Emission ◽  
The Government

Carbon taxes are likely to play a key role in meeting greenhouse gas emission targets that are consistent with the Paris Agreement. In this article, we assess the macroeconomic effects of a carbon tax on the global economy, paying particular attention to the terms-of-trade implications for importers and exporters of fossil fuels. We use a modified version of the National Institute’s Global Econometric Model, NiGEM. In the stylized scenarios, all countries and regions impose a permanent and uniform carbon tax immediately. Our simulations show that demand for fossil fuels falls substantially in response to the tax, global (pre-tax) prices of fossil fuels decline, and the tax can raise substantial revenue for the government. The overall impact on GDP growth and inflation in each country depends on the fossil fuel intensity of output, the net losses/gains in terms of trade and the macroeconomic policy reaction.

Exhaustion of Fossil Fuels and Energy Security

Energy ◽  
2012 ◽  
Author(s):  
José Goldemberg
Keyword(s):  
Natural Gas ◽  
Energy Security ◽  
Fossil Fuels ◽  
Fossil Fuel

Are fossil fuels being exhausted? Although fossil fuel reserves are very large, they are, by nature, exhaustible. As we have discussed previously, the expected life of presently identified reserves is 41 years for oil, 63 years for natural gas, and 147 years for coal....

scholarly journals Influence of Fluctuations in Fossil Fuel Commodities on Electricity Markets: Evidence from Spot and Futures Markets in Europe

Energies ◽  
2020 ◽  
Vol 13 (8) ◽  
pp. 1900 ◽  
Author(s):  
Tiantian Liu ◽  
Xie He ◽  
Tadahiro Nakajima ◽  
Shigeyuki Hamori
Keyword(s):  
Natural Gas ◽  
Frequency Domain ◽  
Electricity Markets ◽  
Futures Markets ◽  
Fossil Fuels ◽  
Fossil Fuel ◽  
Spillover Effect ◽  
Time Frequency ◽  
Volatility Spillovers ◽  
The Time Domain

Using a fresh empirical approach to time-frequency domain frameworks, this study analyzes the return and volatility spillovers from fossil fuel markets (coal, natural gas, and crude oil) to electricity spot and futures markets in Europe. In the time domain, by an approach developed by Diebold and Yilmaz (2012) which can analyze the directional spillover effect across different markets, we find natural gas has the highest return spillover effect on electricity markets followed by coal and oil. We also find that return spillovers increase with the length of the delivery period of electricity futures. In the frequency domain, using the methodology proposed by Barunik and Krehlik (2018) that can decompose the spillover effect into different frequency bands, we find most of the return spillovers from fossil fuels to electricity are produced in the short term while most of the volatility spillovers are generated in the long term. Additionally, dynamic return spillovers have patterns corresponding to the use of natural gas for electricity generation, while volatility spillovers are sensitive to extreme financial events.

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