 The case of co-firing: The market level effects of subsidizing biomass co-combustionJussi Lintunen and Hanna-Liisa Kangas Energy Economics, 2010, vol. 32, issue 3, 694-701 Abstract: Biomass combustion in co-firing power plants has been treated differently in renewable electricity promoting policy schemes. Some policy schemes subsidize biomass co-combustion while some do not. In this study, we analyze the impacts of a policy choice on the fuel uses, investment decisions, CO2 emissions, and on the values of renewable electricity promoting policy instruments. In particular, we look at the impacts of feed-in tariff and a subsidy to renewable energy, both together with CO2 emissions price. We present an electricity and heat market model, where all the solid fossil fuel power plants are able to co-fire biomass and fossil fuel. In the numerical application, the model is used to analyze the differences caused by the policy instruments. The results show that subsidizing biomass combustion in a co-firing power plant decreases the investments in pure renewable technology. However, the use of solid fossil fuels is not increased significantly. Also, the CO2 intensity levels of electricity production are nearly equal whether biomass co-combustion is subsidized or not. Keywords: Co-firing; Biomass; Feed-in; law; Renewable; portfolio; standard; Electricity; market (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:32:y:2010:i:3:p:694-701 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.