Incorporating life cycle external cost in optimization of the electricity generation mix

Energy Policy

Volumn 65, Issue , 2014, Pages 134-149

  Rentizelas, Athanasios ^a   Georgakellos, Dimitrios ^b  

^a UNIVERSITY OF STRATHCLYDE   (United Kingdom)

^b UNIVERSITY OF PIRAEUS   (Greece)

Author keywords

Electricity generation mix; Externalities; Life cycle assessment

Indexed keywords

COST-COMPETITIVENESS; ELECTRICITY GENERATION; ELECTRICITY GENERATION COST; EXTERNALITIES; GENERATING CAPACITY; LIFE CYCLE ASSESSMENT (LCA); LINEAR PROGRAMMING MODELS; STRATEGIC DECISIONS;

COSTS; ELECTRIC GENERATORS; LIFE CYCLE; NATURAL GAS; WIND POWER;

COST BENEFIT ANALYSIS;

BIOMASS; COMPETITIVENESS; COST-BENEFIT ANALYSIS; DECISION ANALYSIS; ELECTRICITY GENERATION; HYDROELECTRIC POWER; LIFE CYCLE ANALYSIS; OPTIMIZATION; SENSITIVITY ANALYSIS; WIND POWER;

GREECE;

EID: 84890313860     PISSN: 03014215     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.enpol.2013.10.023     Document Type: Article

References (88)

1. Ackerman F., Stanton E.A. The Cost of Climate Change-What We'll Pay If Global Warming Continues Unchecked 2008, Natural Resources Defence Council, New York.
2. Akkemik K.A. Cost function estimates, scale economies and technological progress in the Turkish electricity generation sector. Energy Policy 2009, 37(1):204-213.
3. Atakhanova Z., Howie P. Electricity demand in Kazakhstan. Energy Policy 2007, 35:3729-3743.
4. Awerbuch S. Portfolio-based electricity generation planning: policy implications for renewables and energy security. Mitig. Adapt. Strateg. Global Change 2006, 11:693-710.
5. Awerbuch S., Berger M. Energy Security and Diversity in the EU: A Mean-Variance Portfolio Approach 2003, International Energy Agency, Paris.
6. Babbitt C.W., Lindner A.S. A life cycle inventory of coal used for electricity production in Florida. J. Clean. Prod. 2005, 13:903-912.
7. Bagnall A.J. A multi-agent model of the UK market in electricity generation. Applications of Learning Classifier Systems 2004, 167-181. Springer-Verlag, Germany. L. Bull (Ed.).
8. Bar-Lev D., Katz S. A portfolio approach to fossil fuel procurement in the electric utility industry. J. Finance 1976, 31:933-947.
9. Bazilian M., Roques F. Analytic methods for energy diversity and security. Applications of mean variance portfolio theory. A Tribute to Shimon Awerbuch 2008, Elsevier, London.
10. Biska A.G., Oikonomou N. Environmental consideration of ready-mixed concrete production. Tech. Chron. J. I 2006, 3:35-48.
11. Bozicevic Vrhovcak M., Tomsic Z., Debrecin N. External costs of electricity production: case study Croatia. Energy Policy 2005, 33(11):1385-1395.
12. 2 emissions reduction potential in China's electricity sector. Energy Policy 2007, 35:6445-6456.
13. Caralis G., Perivolaris Y., Rados K., Zervos A. On the effect of spatial dispersion of wind power plants on the wind energy capacity credit in Greece. Environ. Res. Lett. 2008, 3(1):1-13.
14. Chaaban F.B., Mezher T., Ouwayjan M. Options for emissions reduction from power plants: an economic evaluation. Electr. Power Energy Syst. 2004, 26:57-63.
15. Ciscar, J.-C., 2009. Climate Change Impacts in Europe: Final Report of the PESETA Research Project. European Commission, Joint Research Centre, Institute for Prospective Technological Studies, Institute for Environment and Sustainability, Luxembourg.
16. Climate Economics Chair, 2012. Press Release-December 19, 2011: European CO2 Emission Trading System-Publication of CO2 Price Forecast (ZEPHYR-Flex Model), accessed 08/2012. http://www.chaireeconomieduclimat.org.
17. Curran M.A. Life Cycle Assessment: Principles and Practice, EPA/600/R-06/060 2006, US Environmental Protection Agency, Cincinnati.
18. Dilaver Z., Hunt L.C. Modelling and forecasting Turkish residential electricity demand. Energy Policy 2011, 39:3117-3127.
19. Dinca C., Rousseaux P., Badea A. A life cycle impact of the natural gas used in energy sector in Romania. J. Clean. Prod. 2007, 15:1451-1462.
20. Dones, R., Gantner, U., Hirschberg, S., 1999. Greenhouse gas total emissions from current and future electricity and heat supply systems. In: Eliasson, B., Riemer, P., Wokaun, A. (Eds.), Proceedings of the Fourth International Conference on Greenhouse Gas Control, Technologies (GHGT-4). Pergamon, Amsterdam, pp. 891-896.
21. Dones, R., Bauer, C, Bolliger, R., Burger, B., Faist-Emmenegger, M., Frischknecht, R., Heck, T., Jungbluth, N., Roder, A., Tuchschmid, M., 2007. Life Cycle Inventories of Energy Systems: Results for Current Systems in Switzerland and Other UCTE Countries, Ecoinvent Report No. 5. Paul Scherrer Institut Villigen, Swiss Centre for Life Cycle Inventories, Dübendorf.
22. Fankhauser S., Tol R.S.J. Climate change costs-recent advancements in the economic assessment. Energy Policy 1996, 24(7):665-673.
23. Fortin I., Fuss S., Hlouskova J., Khabarov N., Obersteiner M., Szolgayova J. An integrated CVaR and real options approach to investments in the energy sector. J. Energy Markets 2008, 1:61-85.
24. Fritsche, U., Rausch, L., 2009. Life Cycle Analysis of GHG and Air Pollutant Emissions from Renewable and Conventional Electricity, Heating, and Transport Fuel Options in the EU Until 2030, ETC/ACC Technical Paper 2009/18, The European Topic Centre on Air and Climate Change (ETC/ACC), Bilthoven.
25. Fruergaard T., Hyks J., Astrup T. Life-cycle assessment of selected management options for air pollution control residues from waste incineration. Sci. Total Environ. 2010, 408:4672-4680.
26. Gagnon L., Belanger C., Uchiyama Y. Life-cycle assessment of electricity generation options: the status of research in the year 2001. Energy Policy 2002, 30:1267-1278.
27. Georgakellos D.A. Evaluation of life cycle inventory results using critical volume aggregation and polygon-based interpretation. J. Cleaner Prod. 2005, 13:567-582.
28. Georgakellos D.A. The use of the LCA polygon framework in waste management. Manage. Environ. Qual.: Int. J. 2006, 17(4):490-507.
29. Georgakellos D.A. Impact of a possible environmental externalities internalization on energy prices: the case of greenhouse gases from the Greek electricity sector. Energy Econ. 2010, 32(1):202-209.
30. Georgakellos D.A. Climate change external cost appraisal of electricity generation systems from a life cycle perspective: the case of Greece. J. Clean. Prod. 2012, 32:124-140.
31. Gökçek M., Genç M. Evaluation of electricity generation and energy cost of wind energy conversion systems (WECSs) in Central Turkey. Appl. Energy 2009, 86:2731-2739.
32. Graebig M., Bringezu S., Fenner R. Comparative analysis of environmental impacts of maize-biogas and photovoltaics on a land use basis. Solar Energy 2010, 84:1255-1263.
33. Graedel T.E., Allenby B.R. Industrial Ecology and Sustainable Engineering 2010, Pearson Int., Upper Saddle River, NJ.
34. Grover R.B., Chandra S. Scenario for growth of electricity in India. Energy Policy 2006, 34:2834-2847.
35. Guinée J.B., Huppes G., Heijungs R. Developing an LCA guide for decision support. Environ. Manage. Health 2001, 12(3):301-311.
36. Han X., Naeher L.P. A review of traffic-related air pollution exposure assessment studies in the developing world. Environ. Int. 2006, 32:106-120.
37. Hassan O.A.B. A value-focused thinking approach for environmental management of buildings construction. J. Environ. Assess. Policy Manage. 2003, 5(2):247-261.
38. Country Profile: Greece-National Reporting to the Fourteenth & Fifteenth Sessions of the Commission for Sustainable Development of the United Nations (UNCSD 14-UNCSD 15). Ministry for the Environment 2006, Hellenic Republic, Physical Planning and Public Works, Athens.
39. Hitz S., Smith J. Estimating global impacts from climate change. Global Environ. Change 2004, 14:201-218.
40. Hondo H. Life cycle GHG emission analysis of power generation systems: Japanese case. Energy 2005, 30:2042-2056.
41. Höjer M., Ahlroth S., Dreborg K.-H., Ekvall T., Finnveden G., Hjelm O., Hochschorner E., Nilsson M., Palm V. Scenarios in selected tools for environmental systems analysis. J. Clean. Prod. 2008, 16:1958-1970.
42. Huybrechts D., Berloznik R., Wouters G., Marion J.-Y., Valenduc G., Vendramin P. The role of ecobalances in environmental decision-making. J. Clean. Prod. 1996, 4(2):111-119.
43. IEA-International Energy Agency, 2005. Projected Cost of Generating Electricity-2005 Update, NEA-IEA-OECD, Paris.
44. IEA-International Energy Agency, 2006. Wind Energy: 2006 Annual Report. OECD/IEA, Paris.
45. IEA-International Energy Agency, 2010. Projected Costs of Generating Electricity-2010 Edition, NEA-IEA-OECD, Paris.
46. Ison E., Miller A. The use of LCA to introduce life-cycle thinking into decision-making for the purchase of medical devices in the NHS. J. Environ. Assess. Policy Manage. 2000, 2(4):453-476.
47. Jaber J.O., Al-Sarkhi A., Akash B.A., Mohsen M.S. Medium-range planning economics of future electrical-power generation options. Energy Policy 2004, 32(3):357-366.
48. Jing Y.-Y., Bai H., Wang J.-J., Liu L. Life cycle assessment of a solar combined cooling heating and power system in different operation strategies. Appl. Energy 2012, 92:843-853.
49. Kaldellis J.K., Zafirakis D., Kondili E. Energy pay-back period analysis of stand-alone photovoltaic systems. Renew. Energy 2010, 35:1444-1454.
50. Kellenberger, D., Althaus, H.-J., Jungbluth, N., Kunniger, T., Lehmann, M., Thalmann, P., 2007. Life Cycle Inventories of Building Products. Final Report Ecoinvent Data v2.0 No. 7. EMPA Dübendorf. Swiss Centre for Life Cycle Inventories, Dübendorf.
51. Korre, A., Durucan, S., 2009. Life Cycle Assessment of Aggregates, EVA025-Final Report: Aggregates Industry Life Cycle Assessment Model: Modelling Tools and Case Studies. Waste and Resources Action Programme, Oxon.
52. Krey V., Martinsen D., Wagner H.J. Effects of stochastic energy prices on long-term energy-economic scenarios. Energy 2007, 32(12):2340-2349.
53. Kucukali S., Baris K. Turkey's short-term gross annual electricity demand forecast by fuzzy logic approach. Energy Policy 2010, 38:2438-2445.
54. Kudelko M. Internalisation of external costs in the Polish power generation sector: a partial equilibrium model. Energy Policy 2006, 34(18):3409-3422.
55. Kumbaroglu G., Madlener R., Demirel M. A real options evaluation model for the diffusion prospects of new renewable power generation technologies. Energy Econ. 2008, 30:1882-1908.
56. Lady G.M Evaluating long term forecasts. Energy Econ. 2010, 32:450-457.
57. Liu T., Xu G., Cai P., Tian L., Huang Q. Development forecast of renewable energy power generation in China and its influence on the GHG control strategy of the country. Renew. Energy 2011, 36:1284-1292.
58. Liu Y., Langer V., Høgh-Jensen H., Egelyng H. Life Cycle Assessment of fossil energy use and greenhouse gas emissions in Chinese pear production. J. Clean. Prod. 2010, 18:1423-1430.
59. Lora E.E.S, Salomon K.R Estimate of ecological efficiency for thermal power plants in Brazil. Energy Convers. Manage. 2005, 46:1293-1303.
60. Lawson J. The Environmental Footprint of Surface Freight Transportation, Transportation Research Board Special Report 291 2007, Lawson Economics Research, Inc, Ottawa, Canada.
61. Madival S., Auras R., Singh S.P., Narayan R. Assessment of the environmental profile of PLA, PET and PS clamshell containers using LCA methodology. J. Clean. Prod. 2009, 17:1183-1194.
62. Madlener R., Kumbaroglu G., Ediger V. Modelling technology adoption as an irreversible investment under uncertainty: the case of the Turkish electricity supply industry. Energy Econ. 2005, 27:39-163.
63. Moberg Å., Finnveden G., Johansson J., Lind P. Life cycle assessment of energy from solid waste-part 2: landfilling compared to other treatment methods. J. Clean. Prod. 2005, 13:231-240.
64. Mondal M.A.H., Boie W., Denich M. Future demand scenarios of Bangladesh power sector. Energy Policy 2010, 38:7416-7426.
65. Montanari R. Environmental efficiency analysis for ENEL thermo-power plants. J. Clean. Prod. 2004, 12:403-414.
66. Nakano K., Hirao M. Collaborative activity with business partners for improvement of product environmental performance using LCA. J. Clean. Prod. 2011, 19:1189-1197.
67. National Observatory of Athens, 2005. Projections of GHG Emissions-Policies and Measures for Reducing GHG Emissions. NOA-Institute of Environmental Research and Sustainable Development, Athens.
68. External Costs from Emerging Electricity Generation Technologies, Deliverable no. 6.1-RS1a, New Energy Externalities Developments for Sustainability 2009, NEEDS, European Commission, Brussels.
69. Nguyen T.L.T., Gheewala S.H. Fossil energy, environmental and cost performance of ethanol in Thailand. J. Clean. Prod. 2008, 16:1814-1821.
70. Notarnicola B., Hayashi K., Curran M.A., Huisingh D. Progress in working towards a more sustainable agri-food industry. J. Clean. Prod. 2012, 28:1-8.
71. Owen A.D. Renewable energy: externality costs as market barriers. Energy Policy 2006, 34(5):632-642.
72. Porat Y., Irith R., Turvey R. Long-run marginal electricity generation costs in Israel. Energy Policy 1997, 25(4):401-411.
73. Pyrovolakis A.A., Georgakellos D.A. Life cycle assessment of electric power coming from a typical Greek petroleum power station. Tech. Chron. J. IV 2005, 1 and 2:67-80.
74. Rachmatullah C., Aye L., Fuller R.J. Scenario planning for the electricity generation in Indonesia. Energy Policy 2007, 35:2352-2359.
75. Rafaj P., Kypreos S. Internalisation of external cost in the power generation sector: analysis with global multi-regional MARKAL model. Energy Policy 2007, 35:828-843.
76. 2 price uncertainty. Int. J. Prod. Econ. 2012, 140:622-629.
77. Roques F.A., Newberry D.M., Nuttall W.J. Fuel mix diversification incentives in liberalized electricity markets: a mean-variance portfolio theory approach. Energy Econ. 2008, 30:1831-1849.
78. Simshauser P., Doan T., Lacey B. The outlook for the economic and environmental performance of Australia's National Electricity Market in 2030. Electr. J. 2007, 20(6):58-75.
79. Steen B. Environmental costs and benefits in life cycle costing. Manage. Environ. Qual.: Int. J. 2005, 16(2):107-118.
80. Tsoutsos T., Kouloumpis V., Zafiris Th., Foteinis S. Life Cycle Assessment for biodiesel production under Greek climate conditions. J. Clean. Prod. 2010, 18:328-335.
81. Turton H. ECLIPSE: an integrated energy-economy model for climate policy and scenario analysis. Energy 2008, 33(12):1754-1769.
82. Vinodh S., Rathod G. Integration of ECQFD and LCA for sustainable product design. J. Clean. Prod. 2009, 18:833-842.
83. Vithayasrichareon P., MacGill I.F. A Monte Carlo based decision-support tool for assessing generation portfolios in future carbon constrained electricity industries. Energy Policy 2012, 41:374-392.
84. Von Blottnitz H., Curran M.A. A review of assessments conducted on bio-ethanol as a transportation fuel from a net energy, greenhouse gas, and environmental life cycle perspective. J. Clean. Prod. 2007, 15:607-619.
85. Weigt H. Germany's wind energy: the potential for fossil capacity replacement and cost saving. Appl. Energy 2009, 86(10):1857-1863.
86. Methodology Report-Life Cycle Inventory Study for Steel Products 2011, WSA, World Steel Association, Brussels.
87. Xia, Y., Zhao, Y.D., Saha, T.K., 2008. Optimal portfolio selection for generators in the electricity market. Power and Energy Society General Meeting-Conversion and Delivery of Electrical Energy in the 21st Century. IEEE, pp. 1-7.
88. Zutshi A., Sohal A.S. Adoption and maintenance of environmental management systems. Critical success factors. Manage. Environ. Qual.: Int. J. 2004, 15(4):399-419.