Clean coal project: carbon certificate pricing

Christoph Casimir Odermatt

International Journal of Trade and Global Markets, 2018, vol. 11, issue 3, 149-159

Abstract: New ultra super-critical coal power plants are proposed to be built in southern Thailand. In this paper, I am comparing different levelised cost of energy in per megawatt-hour for an old and new technology clean coal power plant to other electricity producing power plants. A hypothetical carbon certificate price per tonne of carbon dioxide equivalent is estimated that relates the extra cost of this new coal power plant to the cheapest but dirtiest option, a lignite power plant. The results show that the Thai government is willing to subsidize the abatement of air pollution. Furthermore, renewables keep being more expensive even after including the external costs of air pollution, except for onshore wind energy. However, no comment can be made which option should be strictly preferred as the electricity price and the environmental costs are only part of the political decision for a country on which fuel mix to choose.

Keywords: O220 project analysis; Q420 alternative energy sources; Q480 energy: government policy; Q560 environment and development. (search for similar items in EconPapers)
Date: 2018
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