Alternative depreciation policies for promoting combined heat and power (CHP) development in Brazil

Jeferson Borghetti Soares, Alexandre Salem Szklo and Maurício Tiomno Tolmasquim

Energy, 2006, vol. 31, issue 8, 1151-1166

Abstract: This paper assessed the economic impact of alternative depreciation methods on the development of combined heat-and-power (CHP) systems in the Brazilian industrial sector. Alternative depreciation methods were proposed and the case study of a Brazilian chemical plant showed that the most effective depreciation method for the promotion of CHP plants in Brazil was the Matheson method with an accelerated depreciation schedule of 7 years. This alternative method was then applied to the Brazilian chemical industry as a whole, increasing its installed capacity in CHP systems by 24%. Therefore, fiscal incentives can be an interesting tool for promoting energy efficiency in the Brazilian industrial sector, promoting the expansion of CHP plants. It reduces government fiscal revenues, but it also induces the technological reposition and improves the feasibility of ventures that are not installed without this kind of incentive.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544205001179
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:31:y:2006:i:8:p:1151-1166

DOI: 10.1016/j.energy.2005.05.004

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().