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Open AccessFeature PaperArticle

Effective Use of Carbon Pricing on Climate Change Mitigation Projects: Analysis of the Biogas Supply Chain to Substitute Liquefied-Petroleum Gas in Mexico

Department of Chemical Engineering, Universidad Michoacana de San Nicolas de Hidalgo, Morelia, Michoacan 58060, Mexico
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Processes 2019, 7(10), 668; https://doi.org/10.3390/pr7100668
Received: 12 August 2019 / Revised: 4 September 2019 / Accepted: 20 September 2019 / Published: 27 September 2019
(This article belongs to the Special Issue Bioenergy Systems, Material Management, and Sustainability)
There is presently an urgent demand for efficient and/or renewable energy technologies to correct global warming. However, these energy technologies are limited mainly by political and economic constraints of high costs and the lack of subsidy. Carbon-pricing strategies, such as carbon-emission taxes and carbon-emission trading schemes, may reduce this gap between sustainable and unsustainable energy technologies. Therefore, this paper seeks to analyze both of these carbon-pricing instruments in the Mexican energy sector to promote upgrading biogas investment and to substitute liquified petroleum gas consumption using an optimization approach. Furthermore, we propose a multi-objective optimization approach to encourage investment in the biogas supply chain supported by an effective use of carbon-pricing schemes. A case study of the central western region of Mexico was made to analyze the performance of the proposed methodologies. The results show that carbon-emission taxes and carbon-emission trading systems stimulate, with some limitations, the investment in biogas projects for fossil fuel substitution. Nevertheless, using the proposed multi-objective optimization formulation leads the discovery of a more efficient use of the above-mentioned carbon-pricing schemes, thus reaching higher economic and environmental benefits than traditional carbon-pricing policies, with a lower cost/price per ton of carbon dioxide equivalent. View Full-Text
Keywords: fossil fuel substitution; biogas; carbon tax; carbon emission trading; optimization fossil fuel substitution; biogas; carbon tax; carbon emission trading; optimization
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MDPI and ACS Style

Díaz-Trujillo, L.A.; Tovar-Facio, J.; Nápoles-Rivera, F.; Ponce-Ortega, J.M. Effective Use of Carbon Pricing on Climate Change Mitigation Projects: Analysis of the Biogas Supply Chain to Substitute Liquefied-Petroleum Gas in Mexico. Processes 2019, 7, 668.

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