EconPapers    
Economics at your fingertips  
 

Stranded on a low-carbon planet: Implications of climate policy for the phase-out of coal-based power plants

Nils Johnson, Volker Krey, David L. McCollum, Shilpa Rao, Keywan Riahi and Joeri Rogelj

Technological Forecasting and Social Change, 2015, vol. 90, issue PA, 89-102

Abstract: Limiting global warming to 2°C will likely entail the complete phase-out of coal-based electricity generation without carbon capture and storage (CCS). The timing and rate of this phase-out will depend on the stringency of near-term climate policy and will have important implications for the stranding of coal power plant capacity without CCS. The objectives of this paper are to better understand the relationship between near-term climate policy and stranded coal capacity (assuming a long-term goal of limiting warming to 2°C) and to explore strategies for reducing stranded capacity. Our analysis suggests that strengthening near-term climate policy (i.e., lowering the global greenhouse gas emission target in 2030) generally reduces stranded coal capacity and its costs. An effective strategy for reducing stranded capacity is to minimize new construction of coal capacity without CCS, which can be accomplished by reducing electricity demand through energy intensity improvements and/or by keeping existing plants operating through lifetime extensions. Another strategy, providing emission exemptions for pre-existing coal plants (i.e., grandfathering), would eliminate stranded capacity, but also decreases the likelihood of achieving the 2°C target. Finally, the ability of CCS retrofits to significantly reduce stranded capacity depends on how quickly the technology can be deployed.

Keywords: Integrated assessment modeling; Near-term climate policy; Coal-based electricity generation without CCS; Premature retirement; Stranded capacity; CCS retrofit (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (12) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162514000924
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:tefoso:v:90:y:2015:i:pa:p:89-102

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-11-07
Handle: RePEc:eee:tefoso:v:90:y:2015:i:pa:p:89-102