scholarly journals Optimal Operational Strategy for Power Producers in Korea Considering Renewable Portfolio Standards and Emissions Trading Schemes

Energies ◽  
2019 ◽  
Vol 12 (9) ◽  
pp. 1667 ◽  
Author(s):  
Dongmin Son ◽  
Joonrak Kim ◽  
Bongju Jeong
Keyword(s):  
Emissions Trading ◽  
Policy Implications ◽  
Renewable Portfolio Standard ◽  
Low Carbon ◽  
Operational Strategy ◽  
Korean Government ◽  
Carbon Emissions Reduction ◽  
Expansion Plan ◽  
Trading Scheme ◽  
The Impact

Globally, many countries are experiencing economic growth while concurrently increasing their energy consumption. Several have begun to consider a low-carbon energy mix to mitigate the environmental impacts caused by increased fossil fuel consumption. In terms of maximizing profits, however, power producers are not sufficiently motivated to expand capacity due to high costs. Thus, the Korean government initiated the Renewable Portfolio Standard (RPS), an obligation to generate a certain proportion of a producer’s total generation using renewable energy for power producers with capacities of 500 MW or more, and the Emissions Trading Scheme (ETS), designed to attain a carbon emissions reduction goal. We propose a mathematical model to derive the optimal operational strategy for maximizing power producer profits with a capacity expansion plan that meets both regulations. As such, the main purpose of this study was to obtain the optimal operational strategy for each obligatory power producer. To that end, we defined a 2 × 2 matrix to classify their types and to conduct scenario-based analyses to assess the impact of major factor changes on solutions for each type of power producer. Finally, for the power generation industry to operate in a sustainable and eco-friendly manner, we extracted policy implications that the Korean government could consider for each type of power producer.

scholarly journals Assessing the Economic and Environmental Impacts of Alternative Renewable Portfolio Standards: Winners and Losers

Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3319
Author(s):  
Jamal Mamkhezri ◽  
Leonard A. Malczynski ◽  
Janie M. Chermak
Keyword(s):  
New Mexico ◽  
Environmental Impacts ◽  
The State ◽  
Policy Implications ◽  
Renewable Portfolio Standard ◽  
County Level ◽  
Renewable Portfolio Standards ◽  
Energy Potential ◽  
Output Analysis ◽  
The Impact

State-mandated renewable portfolio standards affect substantial portions of the total U.S. electricity supply. Renewable portfolio standards are environmentally motivated policies, yet they have the potential to greatly impact economy. There is not an agreement in the literature on the impact of renewable portfolio standards policies on regional economies, especially on job creation. By integrating various methodologies including econometrics, geographic information system, and input–output analysis into a unique system dynamics model, this paper estimates the economic and environmental impacts of various renewable portfolio standards scenarios in the state of New Mexico, located in Southwestern U.S. The state is endowed with traditional fossil fuel resources and substantial renewable energy potential. In this work we estimated and compared the economic and environmental tradeoffs at the county level under three renewable portfolio standards: New Mexico’s original standard of 20% renewables, the recently adopted 100% renewables standard, and a reduced renewable standard of 10%. The final one would be a return to a more traditional generation profile. We found that while the 20% standard has the highest market-based economic impact on the state as a whole, it is not significantly different from other scenarios. However, when environmental impacts are included, the 100% standard yields the highest value. In addition, while the state level economic impacts across the three scenarios are not significantly different, the county-level impacts are substantial. This is especially important for a state like New Mexico, which has a high reliance on energy for economic development. A higher renewable portfolio standard appears to be an economic tool to stimulate targeted areas’ economic growth. These results have policy implications.

The Impossible Transplant of the EU Emissions Trading Scheme: The Challenge of Energy Market Regulation

2016 ◽  
Vol 6 (1) ◽  
pp. 59-85 ◽  
Author(s):  
Anatole Boute
Keyword(s):  
Emerging Economies ◽  
Emissions Trading ◽  
Energy Market ◽  
Market Regulation ◽  
The European Union ◽  
Emissions Trading Scheme ◽  
Trading Scheme ◽  
The Cost ◽  
The Impact ◽  
The Eu

AbstractFollowing the European Union (EU) experience, an increasing number of countries are establishing an Emissions Trading Scheme (ETS). The EU ETS often serves as a ‘model’ despite fundamental differences in the receiving environment. In the EU liberalized energy markets, carbon prices are intended to raise the cost of carbon-intensive energy and thereby stimulate cleaner alternatives. In contrast, many emerging economies continue to regulate energy investments and prices, which may insulate consumers and producers from the impact of an ETS. To avoid this risk, energy economists advocate EU-style energy market reforms as a prerequisite to the introduction of the ETS concept abroad. By focusing on the cases of China, Kazakhstan, and Russia, this article highlights the limits on the exportation of the EU liberalization model and argues that, instead of energy reform, the ETS must be reconceptualized as a mechanism that integrates the regulated energy market paradigm in emerging economies.

Contracting Emissions Reduction Supply Chain Based on Market Low-Carbon Preference and Carbon Intensity Constraint

2020 ◽  
Vol 37 (02) ◽  
pp. 2050003
Author(s):  
Jiaping Xie ◽  
Jing Li ◽  
Ling Liang ◽  
Xu Fang ◽  
Guang Yang ◽  
...  
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Numerical Study ◽  
Carbon Intensity ◽  
Emissions Reduction ◽  
Low Carbon ◽  
Cost Coefficient ◽  
Carbon Emissions Reduction ◽  
Negative Effect ◽  
The Impact

Carbon emissions reduction has become a frequently discussed topic in industry and academia. However, how can reduction effects be enhanced with dominant brand and downstream manufacturer? This paper incorporates emissions reduction into a green supply chain which considers consumers’ low-carbon preference behavior and government intensity regulations, in order to discuss the impacts of consumers’ environmental awareness and government constraints on optimal emissions reduction and profit, respectively. The paper first constructs three reduction models on the basis of reality: independent reduction by manufacturer, contractual reduction by brand and collaborative reduction by both. Then it concludes the optimal decisions and compare the models. The results show that both the profits and emissions reduction will be decreased with the strengthened carbon intensity constraint, but the cost-sharing contract can mitigate this negative effect on dominant brand and society. Meanwhile, the acceptable range of cost-sharing ratio will be smaller with a lower cost coefficient of emissions reduction and a higher consumers’ preference. Furthermore, government should design the incentive method or regulate the carbon market to improve the social welfare level. Lastly, a numerical study is conducted, the impact of several key factors on supply chain performance and model selection are presented for management decisions.

scholarly journals Low-carbon innovation induced by emissions trading in China

2019 ◽  
Vol 10 (1) ◽  
Author(s):  
Junming Zhu ◽  
Yichun Fan ◽  
Xinghua Deng ◽  
Lan Xue
Keyword(s):  
Emissions Trading ◽  
Low Carbon ◽  
Firm Characteristics ◽  
Firm Level ◽  
Permit Price ◽  
National Market ◽  
Allowance Allocation ◽  
Quasi Experimental ◽  
Price Auction ◽  
Trading Scheme

Abstract Emissions trading scheme (ETS) has been adopted by an increasing number of countries and regions for carbon mitigation, but its actual effect depends on specific program design and institutional context. Before launching the world largest ETS, China experimented with seven independent regional pilots, whose effects are only indirectly explored. Here we provide firm-level evidence of the innovation effect directly from China’s pilot emissions trading, based on latest patenting information and a quasi-experimental design. China’s pilots increase low-carbon innovation of ETS firms by 5–10% without crowding out their other technology innovation. The increase from ETS firms accounts for about 1% increase of the regional low-carbon patents, while a similar increase from large non-ETS firms is also induced by the ETS. Most importantly, the effect is not associated with permit price, auction, or firm characteristics, but is driven by mass-based allowance allocation. A rate-based approach, however, is adopted by China’s national market.

Carbon as an Emerging Tool for Risk Management

2011 ◽  
pp. 221-240
Author(s):  
Tenke A. Zoltáni
Keyword(s):  
Risk Management ◽  
Value Chain ◽  
Emissions Trading ◽  
Business Models ◽  
Low Carbon ◽  
The European Union ◽  
Reputational Risk ◽  
Sustainability Strategies ◽  
Trading Scheme ◽  
New Generation

Since 2005, when the European Union Emissions Trading Scheme (EU ETS) launched, green adoption in business and industry has been marred by fraudulent carbon credits, VAT swindlers and carbon cowboys, inefficiencies of a nascent market, and not least of all by legislative uncertainty. The disrepute afforded by these examples hindered low carbon growth and deterred emerging business models from adopting more carbon friendly practices. But, as this chapter argues, the shift toward liberal environmentalism has yielded a new generation of businesses seeking to incorporate carbon assets, emissions trading, and sustainability strategies across the value chain. Central to this shift is the notion of carbon as a tool for risk management in businesses, which occurred through the instrumentalisation of CO2 into a tradable asset. By utilising carbon as a financial instrument, businesses are able to manage project risk, market risk, and reputational risk more effectively. This chapter demonstrates this argument through industry examples and provides practical advice for businesses today.

The Impact of Korea’s Green Growth Policies on the National Economy and Environment

2014 ◽  
Vol 14 (4) ◽  
pp. 1585-1614 ◽  
Author(s):  
Won-Sik Hwang ◽  
Inha Oh ◽  
Jeong-Dong Lee
Keyword(s):  
National Economy ◽  
Carbon Capture And Storage ◽  
Ghg Emissions ◽  
Renewable Portfolio Standard ◽  
Baseline Scenario ◽  
Low Carbon ◽  
Green Growth ◽  
Ghg Reduction ◽  
The Government ◽  
The Impact

Abstract The Korean government has recently established national and sectoral mid-term greenhouse gas (GHG) reduction targets. Specifically, the country must reduce its total GHG emissions by 30% compared to business-as-usual (BAU) by 2020. This study has two main purposes. First, the study aims to measure the economic impacts of pursuing and achieving the government’s GHG reduction targets. Second, it aims to estimate each major policy’s potential GHG emission reductions in the various sectors. We use the computable general equilibrium model and develop three scenarios to examine the economic and environmental impacts of Korea’s green growth policies – a baseline scenario wherein the national economy proceeds without green growth policies; scenario A, wherein the government imposes national and sectoral emission reduction targets without adopting green technologies; and scenario B, wherein the government adopts policy and technology as renewable portfolio standard and carbon capture and storage. The simulation results from scenario A indicate that the government’s mid-term targets could pose a significant challenge to Korea’s national economy. In addition, the results from scenario B indicate that low-carbon green policy and technology will play an important role in reducing GHG emissions.

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