Renewable Energy Technologies and Carbon Capture Retrofits Are Strategic Complements
Abstract
This Study Models a Profit-Maximizing Power Generator's Decision to (1) Produce Electricity, (2) Use Renewable Energy Technology, and (3) Determine the Percent of Carbon Dioxide Emissions to Capture using a Carbon Capture Retrofit. Results Suggest that, under the Given Model Assumptions, When Policy Incentives (Carbon Capture Subsidy and Carbon Tax) Are Sufficiently High, Profit-Maximizing Generators Could Increase the Percent of Carbon Dioxide Captured with the Increase in the Share of Electricity Produced using Renewable Energy Technologies. This Suggests that with the Right Policy Incentives, Fossil-Based Power Plants Could Adopt Both Renewable Energy and Carbon Capture Retrofits as Investment Options that Are Strategic Complements (Not Substitutes).
Recommended Citation
Fikru, M. G., & Azure, J. W. (2023). Renewable Energy Technologies and Carbon Capture Retrofits Are Strategic Complements. Technological Forecasting and Social Change, 196 Elsevier.
The definitive version is available at https://doi.org/10.1016/j.techfore.2023.122850
Department(s)
Economics
Keywords and Phrases
Decarbonization; Energy policy; Energy transition; Profit maximization; Strategic complements
International Standard Serial Number (ISSN)
0040-1625
Document Type
Article - Journal
Document Version
Citation
File Type
text
Language(s)
English
Rights
© 2023 Elsevier, All rights reserved.
Publication Date
01 Nov 2023
