Investigating the Impact of Carbon Tax to Power Generation in Java-Bali System by Applying Optimization Technique
Java-Bali power system dominates the national installed capacity and will contribute to about 76% of the national CO2 emissions from the electricity sector in the future. Thus, minimizing CO2 emission from the Java-Bali system can help Indonesia to reduce the national CO2 emissions level. We apply optimization approach to investigate this problem by including carbon tax into the cost function. We analyzed data based on electricity generating system in 2008. In general the optimization showed that diesel and gas turbine is not needed in the power plant system. Further, the simulation showed that if Indonesia adopted carbon tax by US$56/ton CO2 - USD 86/tCO2; it will lead to three major changing. First, carbon tax will increase the cost of power plant or equivalently increase tax revenue to about 2.1% of GDP in a year. Second, combine cycle has important role to offset decreasing output in steam power plant. Finally, by implementing carbon tax, daily CO2 can decrease by 77,586 ton per day. By applying sensitivity analysis, we also found a structural break in marginal cost when carbon tax is higher than US$ 50/tCO2. There are some weaknesses from this study such as not use strong assumption for availability factor and generating costs. This study proposed that government needs to optimize utilization of combine cycle power plan to offset steam power and implement carbon tax above US$ 50/ ton CO2, to reduce CO2 emissions significantly.
A Joint Production and Maintenance Optimization of Closed-Loop Production System under Carbon Emission with a Switching Subcontractor Consideration
This study outlines a new forecasting problem of closed-loop production system under environmental aspect by proposing a new solution based on subcontracting. By studying the impact of the carbon tax on decision-making of production optimization, we propose an original economic production and maintenance strategies to minimize the total cost. Additionally, to reduce the total quantity of carbon and its tax, the subcontractor has a role to help either manufacturing or remanufacturing unit during the process of production. Indeed, the principle objectives are to determine the economic production plans for manufacturing, remanufacturing and subcontracting units as well as the optimal maintenance planning characterized by the optimal number of preventive maintenance actions for manufacturing unit, minimizing the total cost of production, inventory, carbon penalty and maintenance.
Stabilizing CO2 emissions Are carbon taxes a viable option
Abstract The paper provides an empirical analysis of the effect on international energy markets of policy measures to curb the emissions of carbon dioxide (CO2). Model calculations indicate that if CO2 emissions are to be stabilized by means of a carbon tax, very high tax levels are required. The concept of cost-effectiveness in designing agglobal climate convention is discussed. Due to the huge differences in pre-tax energy prices, it is argued that a uniform CO2 tax is not necessarily cost-effective. The differences in price levels also have important implications for the effects of a CO2 tax on the markets for the various fuels.