Optimal time for investment to regulate emissions of particulate matter in Indian thermal power plants

Ishita Sengupta

Environment and Development Economics, 2007, vol. 12, issue 06, pages 827-860

Abstract: This study aims to find the optimal switching point for the Indian coal-based power plants to switch to a cost-effective technology and reduce particulate emissions. Regulation in the form of an emission standard, an emissions tax, an ash tax, or a coal tax provides an incentive for the power plants to abate. We have taken a period of 40 years to show the pattern of abatement in a sample of 40 power plants. Linear programming using GAMS has been used for the analysis to determine when the plants will shift to cost-efficient technology. We have first done the analysis on a firm-to-firm basis and then we have aggregated to show the variability of our results.

Date: 2007

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