CO2 Abatement in the UK Power Sector: Evidence from the EU ETS Trial Period
This paper provides an empirical assessment of CO2 emissions abatement in the UK power sector during the trial period of the EU ETS. Using an econometrically estimated model of fuel switching, it separates the impacts of changes in relative fuel prices and changes in the EUA price on the utilizatio...
| Main Authors: | , |
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| Format: | Working Paper |
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2009
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| Online Access: | http://hdl.handle.net/1721.1/45654 |
| _version_ | 1826212379050901504 |
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| author | Ellerman, A. Denny McGuinness, Meghan |
| author_facet | Ellerman, A. Denny McGuinness, Meghan |
| author_sort | Ellerman, A. Denny |
| collection | MIT |
| description | This paper provides an empirical assessment of CO2 emissions abatement in the UK power sector during the trial period of the EU ETS. Using an econometrically estimated model of fuel switching, it separates the impacts of changes in relative fuel prices and changes in the EUA price on the utilization and emissions of coal and natural gas-fired generating units. We find clear statistical evidence that the CO2 price did impact dispatch decisions, resulting in natural gas utilization that was from 19% to 24% higher and coal utilization that was 16% to 18% lower than would have otherwise occurred in 2005 and 2006. Abatement as a result of fuel switching in the power sector is estimated to have been between 13 million and 21 million tons of CO2 in 2005 and 14 and 21 million tons in 2006. |
| first_indexed | 2024-09-23T15:20:45Z |
| format | Working Paper |
| id | mit-1721.1/45654 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T15:20:45Z |
| publishDate | 2009 |
| record_format | dspace |
| spelling | mit-1721.1/456542019-04-12T09:58:52Z CO2 Abatement in the UK Power Sector: Evidence from the EU ETS Trial Period Ellerman, A. Denny McGuinness, Meghan This paper provides an empirical assessment of CO2 emissions abatement in the UK power sector during the trial period of the EU ETS. Using an econometrically estimated model of fuel switching, it separates the impacts of changes in relative fuel prices and changes in the EUA price on the utilization and emissions of coal and natural gas-fired generating units. We find clear statistical evidence that the CO2 price did impact dispatch decisions, resulting in natural gas utilization that was from 19% to 24% higher and coal utilization that was 16% to 18% lower than would have otherwise occurred in 2005 and 2006. Abatement as a result of fuel switching in the power sector is estimated to have been between 13 million and 21 million tons of CO2 in 2005 and 14 and 21 million tons in 2006. Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research. 2009-06-29T18:03:31Z 2009-06-29T18:03:31Z 2008 Working Paper 2008-010 http://hdl.handle.net/1721.1/45654 MIT-CEEPR;2008-010 application/pdf |
| spellingShingle | Ellerman, A. Denny McGuinness, Meghan CO2 Abatement in the UK Power Sector: Evidence from the EU ETS Trial Period |
| title | CO2 Abatement in the UK Power Sector: Evidence from the EU ETS Trial Period |
| title_full | CO2 Abatement in the UK Power Sector: Evidence from the EU ETS Trial Period |
| title_fullStr | CO2 Abatement in the UK Power Sector: Evidence from the EU ETS Trial Period |
| title_full_unstemmed | CO2 Abatement in the UK Power Sector: Evidence from the EU ETS Trial Period |
| title_short | CO2 Abatement in the UK Power Sector: Evidence from the EU ETS Trial Period |
| title_sort | co2 abatement in the uk power sector evidence from the eu ets trial period |
| url | http://hdl.handle.net/1721.1/45654 |
| work_keys_str_mv | AT ellermanadenny co2abatementintheukpowersectorevidencefromtheeuetstrialperiod AT mcguinnessmeghan co2abatementintheukpowersectorevidencefromtheeuetstrialperiod |