A Sketch of Bolivia’s Potential Low-Carbon Power System Configurations. The Case of Applying Carbon Taxation and Lowering Financing Costs

This paper considers hypothetical options for the transformation of the Bolivian power generation system to one that emits less carbon dioxide. Specifically, it evaluates the influence of the weighted average cost of capital (WACC) on marginal abatement cost curves (MACC) when applying carbon taxati...

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Bibliographic Details
Published inEnergies (Basel) Vol. 11; no. 10; p. 2738
Main Authors Peña Balderrama, Jenny, Alfstad, Thomas, Taliotis, Constantinos, Hesamzadeh, Mohammad, Howells, Mark
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.10.2018
Subjects
Bolivia
carbon abatement costs
carbon tax
Climate change
Costs
Developing countries
discount rate
Economic models
Energy technology
Greenhouse effect
Greenhouse gases
Kyoto Protocol
LDCs
MACC
OSeMOSYS
Renewable energy technologies
Renewable resources
Taxation
Taxes
Sweden
Cyprus
Bolivia
United States > US
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Summary:This paper considers hypothetical options for the transformation of the Bolivian power generation system to one that emits less carbon dioxide. Specifically, it evaluates the influence of the weighted average cost of capital (WACC) on marginal abatement cost curves (MACC) when applying carbon taxation to the power sector. The study is illustrated with a bottom-up least-cost optimization model. Projections of key parameters influence the shape of MACCs and the underlying technology configurations. These are reported. Results from our study (and the set of assumptions on which they are based) are country-specific. Nonetheless, the methodology can be replicated to other case studies to provide insights into the role carbon taxes and lowering finance costs might play in reducing emissions.
ISSN:1996-1073
1996-1073
DOI:10.3390/en11102738