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Impact of European Emissions Trading System (EU-ETS) on carbon emissions and investment decisions in the power sector

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dc.contributor.advisor A. Denny Ellerman and David H. Marks. en_US
dc.contributor.author Feilhauer, Stephan M. (Stephan Marvin) en_US
dc.contributor.other Massachusetts Institute of Technology. Dept. of Civil and Environmental Engineering. en_US
dc.date.accessioned 2010-03-25T14:54:21Z
dc.date.available 2010-03-25T14:54:21Z
dc.date.copyright 2009 en_US
dc.date.issued 2009 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/53055
dc.description Thesis (S.M. in Technology and Policy)--Massachusetts Institute of Technology, Engineering Systems Division, Technology and Policy Program; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering, 2009. en_US
dc.description Includes bibliographical references (p. 110-118). en_US
dc.description.abstract This masters thesis assesses the impact of a emissions trading on short-term carbon abatement and investment decisions in the power sector. Environmental benefits from carbon abatement due to emissions trading are quantified using top-down trend analysis and a bottom-up power sector model "E-simulate" to define upper and lower boundaries on carbon abatement in Germany in the first phase of the EU Emissions Trading Scheme (2005-2007). The long-term economic and investment implications of emissions trading form the centerpiece of the thesis. A sample coal and gas investment project is modeled using discounted cash flows and analyzed using probabilistic Monte Carlo methods. The model results help explain the empirical evidence of an increase in coal investments in Germany against a preference for gas in the wider European market. The model is used to separately discuss both the price and allocation effects of emissions trading on investment decisions in the power sector. The modeling provides evidence of the dominance of fuel prices on the long-term investment decision and highlights under which carbon and fuel price scenarios the current preference for coal over gas investments could be reversed. Model results show a good match when compared to power spreads which are created using empirical data. Furthermore, related policy domains such as the Clean Development Mechanism (CDM) and Renewable energy policy are assessed and sector-wide carbon abatement estimates are reconciled between fuel switching and emissions displacement from renewables. en_US
dc.description.statementofresponsibility by Stephan M. Feilhauer. en_US
dc.format.extent 120 p. en_US
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri http://dspace.mit.edu/handle/1721.1/7582 en_US
dc.subject Engineering Systems Division. en_US
dc.subject Technology and Policy Program. en_US
dc.subject Civil and Environmental Engineering. en_US
dc.title Impact of European Emissions Trading System (EU-ETS) on carbon emissions and investment decisions in the power sector en_US
dc.type Thesis en_US
dc.description.degree S.M. en_US
dc.description.degree S.M.in Technology and Policy en_US
dc.contributor.department Massachusetts Institute of Technology. Engineering Systems Division. en_US
dc.contributor.department Massachusetts Institute of Technology. Technology and Policy Program. en_US
dc.contributor.department Massachusetts Institute of Technology. Dept. of Civil and Environmental Engineering. en_US
dc.identifier.oclc 501183591 en_US


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