IMPACT OF CARBON TRADING ON UTILITIES

0,41

MB

66

stron

5270

ID

University of Strathclyde

2005

rok

TABLE OF CONTENTS

Title Page 1

Declaration of Authorisation 2

Acknowledgement 3

Dedication4

Abstract 5

List of Figures 7

List of Tables 8

Table of Contents 10

Chapter 1: Introduction 11

1.1. Overview 11

1.2. Reasons of Study 12

1.3. Purpose of Study 12

Chapter 2: Background Study 13

2.1. Carbon Trading 13

2.2. Policy Background 14

2.2.1 The UNFCC 14

2.2.2 Kyoto Protocol 16

2.2.3 Kyoto Mechanisms 18

2.3 Approaches to Emission Trading 23

2.4 Coverage 25

2.5 Carbon Market 26

2.6 Allocation of Allowances 28

Chapter 3: The EU Emission Trading Scheme 30

3.1 The EU Burden Sharing Agreement 32

3.2 Permits and Allowances 34

3.3 National Allocation Plan 37

Chapter 4: Modelling Methodology 38

4.1 Procedure for Calculating Emission Reduction 38

4.2 The Spreadsheet Model 41

4.2.1 Sources of Data 41

4.2.2 Estimation Approach 41

4.2.3 Using the Spreadsheet Model 42

4.3. Emission by Power Plant 43

4.4. Analysis of Sample Output 47

Chapter 5: Impact of Carbon Trading On Power Utilities 49

5.1 Price Implication 49

5.2 Investment Decisions 51

5.3 Fuel switching 53

5.4 Renewable Obligation 54

Chapter 6: Conclusion and Policy Implications 58

6.1 Conclusion 58

6.2 Policy Implications 59

References 6