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Energies 2018, 11(10), 2738; https://doi.org/10.3390/en11102738

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

1
Division of Energy Systems Analysis, Department of Energy Technology, KTH Royal Institute of Technology, 114 28 Stockholm, Sweden
2
Facultad de Ciencias y Tecnología, Universidad Mayor de San Simón, 2500 Cochabamba, Bolivia
3
United Nations Division of Social and Economic Affairs, New York, NY 10001, USA
4
The Cyprus Institute, 2121 Nicosia, Cyprus
5
Department of Electric Power and Energy Systems, KTH Royal Institute of Technology, 111 21 Stockholm, Sweden
*
Author to whom correspondence should be addressed.
Received: 22 August 2018 / Revised: 28 September 2018 / Accepted: 8 October 2018 / Published: 12 October 2018
(This article belongs to the Special Issue Sustainable Energy Systems)
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Abstract

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. View Full-Text
Keywords: carbon tax; discount rate; carbon abatement costs; MACC; Bolivia; OSeMOSYS carbon tax; discount rate; carbon abatement costs; MACC; Bolivia; OSeMOSYS
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Peña Balderrama, J.G.; Alfstad, T.; Taliotis, C.; Hesamzadeh, M.R.; Howells, M. A Sketch of Bolivia’s Potential Low-Carbon Power System Configurations. The Case of Applying Carbon Taxation and Lowering Financing Costs. Energies 2018, 11, 2738.

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