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Optimizing Corporate Energy Choices: A Framework for the Net-Zero Emissions Transition

Chun-Hsu Lin (), Lih-Chyi Wen and Jia-Cheh Lo
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Chun-Hsu Lin: Chung-Hua Institution for Economic Research, Taipei 106, Taiwan
Lih-Chyi Wen: ERM Taiwan, Taipei 104, Taiwan
Jia-Cheh Lo: Chung-Hua Institution for Economic Research, Taipei 106, Taiwan

Energies, 2025, vol. 18, issue 7, 1-21

Abstract: For the net-zero emission goal by 2050, the government of Taiwan has mandated large electricity consumers to utilize 10% green electricity to mitigate carbon emissions. Major enterprises face challenges in selecting appropriate green power options and integrating the benefits of carbon reduction into corporate governance decision-making. This study aims to optimize the combination of various green power options through a system dynamics approach, incorporating existing power purchase conditions and electricity consumption data from enterprises. In addition, by utilizing financial estimations with the monetization of environmental benefits, we constructed a more complete evaluation model for enterprises transitioning to green power. The results indicate low investment returns in various green energy portfolios. However, if power storage equipment is utilized to participate in auxiliary services, the investment return of green energy can be significantly enhanced. This evaluation model is also available online for business professionals across various sectors to explore and reference.

Keywords: renewable energy; net-zero emission; decision model; environmental cost/benefit analysis (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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