Construction of the Marginal Abatement Cost Curve: Retrofitting Carbon Capture and Storage in Australia
Author(s)
West, Jason
Griffith University Author(s)
Year published
2012
Metadata
Show full item recordAbstract
Marginal abatement cost curves are a principal tool used for measuring the relative economic impact of emissions abatement mechanisms. Abatement curves can be constructed using either a top-down approach based on aggregated microeconomic models or using a bottom-up approach based on an engineering assessment that analyses different technical potentials for emission reductions. While top-down models offer simplicity and ease of interpretation, they are not as robust as the bottom-up approach, particularly for assessing the implications of new technologies such as carbon capture and storage (CCS). Using a bottom-up approach ...
View more >Marginal abatement cost curves are a principal tool used for measuring the relative economic impact of emissions abatement mechanisms. Abatement curves can be constructed using either a top-down approach based on aggregated microeconomic models or using a bottom-up approach based on an engineering assessment that analyses different technical potentials for emission reductions. While top-down models offer simplicity and ease of interpretation, they are not as robust as the bottom-up approach, particularly for assessing the implications of new technologies such as carbon capture and storage (CCS). Using a bottom-up approach and incorporating real options analysis, this study redefines the relative abatement costs for retrofitting post-combustion CCS technology to coal-fired generators and then reconstructs the Australian marginal emissions abatement curve. The revised curve provides power generators and other industry sectors with more accurate and stable abatement cost estimates for these technologies relative to alternate abatement options.
View less >
View more >Marginal abatement cost curves are a principal tool used for measuring the relative economic impact of emissions abatement mechanisms. Abatement curves can be constructed using either a top-down approach based on aggregated microeconomic models or using a bottom-up approach based on an engineering assessment that analyses different technical potentials for emission reductions. While top-down models offer simplicity and ease of interpretation, they are not as robust as the bottom-up approach, particularly for assessing the implications of new technologies such as carbon capture and storage (CCS). Using a bottom-up approach and incorporating real options analysis, this study redefines the relative abatement costs for retrofitting post-combustion CCS technology to coal-fired generators and then reconstructs the Australian marginal emissions abatement curve. The revised curve provides power generators and other industry sectors with more accurate and stable abatement cost estimates for these technologies relative to alternate abatement options.
View less >
Journal Title
Australian Journal of Mechanical Engineering
Volume
9
Issue
2
Copyright Statement
Self-archiving of the author-manuscript version is not yet supported by this journal. Please refer to the journal link for access to the definitive, published version or contact the authors for more information.
Subject
Finance
Investment and Risk Management
Manufacturing Engineering
Maritime Engineering
Mechanical Engineering