The Economics of Transition in the Power Sector

William Blyth
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William Blyth: Oxford Energy Associates

No 2010/2, IEA Energy Papers from OECD Publishing

Abstract: Power generation from fossil fuel is one of the largest sources of greenhouse gas emissions, representing 41% of global energy-related CO2 emissions. Combined with the fact that there are a number of low-carbon technologies available for generating electricity, the sector is therefore a key policy target for delivering near-term and long-term reductions in emissions. This report identifies the importance of these risk factors in the economics of transition by illustrating the case of investment in the power sector. To a great extent, the transition to a lowcarbon power sector means dealing with coal plants, which is the largest contributor, accounting for 73% of global power sector CO2 emissions, and particularly those from the United States, Europe and China, which contribute 17%, 9% and 24% respectively of global power sector CO2 emissions.

Date: 2010-01-01
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