학술논문

The role of energy tax in CO/sub 2/ emission reduction from the power sector: a factor decomposition analysis
Document Type
Conference
Source
2004 IEEE/PES Transmision and Distribution Conference and Exposition: Latin America (IEEE Cat. No. 04EX956) Transmission and Distribution Conference Transmission and Distribution Conference and Exposition: Latin America, 2004 IEEE/PES. :107-112 2004
Subject
Power, Energy and Industry Applications
Communication, Networking and Broadcast Technologies
Power generation economics
Costs
Environmental economics
Fuel economy
Fossil fuels
Pollution measurement
Carbon dioxide
Pricing
Production
Instruments
Language
Abstract
A decomposition model has been developed to examine the factors which affect the change in CO/sub 2/ emission due to considering energy tax in the Indonesian power sector during 2006-2025. There are two factors which affect the change in CO/sub 2/ emission due to energy tax, i.e., technological substitution effect and demand side effect. The results show that the reduction of CO/sub 2/ emission would increase from 3.5% to 73.5% if the energy tax is increased from US$0.5/Mbtu to US$10.0/Mbtu. At lower energy tax rates (i.e., at tax rate US$2.0/Mbtu and lower), the CO/sub 2/ emission reduction is mainly due to demand side effect. However, the role of technological substitution effect is more influential at tax rates higher than US$2.0/Mbtu. The results also show that the SO/sub 2/ and NO/sub x/ mitigation would also increase from 3.5% to 85.0% and from 3.3% to 70.9% respectively if the energy tax is increased from US$0.5/Mbtu to US$10.0/Mbtu.