Long Term Dynamics in CO2 Allowance Prices and Carbon Capture Investments

In this paper we analyse the behaviour of the EU market for CO2 emission allowances; specifically, we focus on the contracts maturing in the Kyoto Protocol's second period of application (2008 to 2012). We calibrate the underlying parameters for the allowance price in the long run and we also calibrate those from the Spanish wholesale electricity market. This information is then used to assess the option to install a carbon capture and storage (CCS) unit in a coal-fired power plant. We use a two-dimensional binomial lattice where costs and profits are valued and the optimal investment time is determined. In other words, we study the trigger allowance prices above which it is optimal to install the capture unit immediately. We further analyse the impact of several variables on the critical prices, among them allowance price volatility and a hypothetical government subsidy. We conclude that, at current permit prices, from a financial point of view, immediate installation does not seem justified. This need not be the case, though, if carbon market parameters change dramatically and/or a specific policy to promote these units is adopted.

Síntesis de carbonato de glicerol a partir de glicerol, CO2 y sus derivados

209 p. : il., gráf.

Mecanismos fisiológicos de respuesta de la cebada al impacto de la sequía y el elevado CO2 : adaptación al cambio climático

251 p. : il., col.

Breaking the 400 ppm barrier: Physical and Social implications of the recent CO2 rise

6 p.

Rompiendo la barrera de las 400 ppm: implicaciones físicas y sociales del reciente aumento de CO2

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400 ppm-ko langa hautsi da: CO2-kontzentrazioaren igoeraren ondorio fisiko eta sozialak

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Market Instruments and CO2 Mitigation: A General Equilibrium Analysis for Spain

25 p.

Evaluation of Two Alternative Carbon Capture and Storage Technologies: A Stochastic Model

30 p.