Economics of CO2 Emissions in Power Systems
Publication information:
Rudkevich, Aleksandr. “Economics of CO2 Emissions in Power Systems ”. In.
Abstract
The paper analyzes the economics of CO2 emissions in power systems by introducing concepts of marginal carbon intensity (MCI) of electricity demand and shadow carbon intensities (SCI) of binding transmission constraints. It demonstrates that values of MCIs are time and location dependent and exhibit properties similar to those of locational marginal prices of power. These concepts and their properties are discussed using simple examples illustrating their importance and potential use in solving practical problems and designing CO2 abatement policies.