How do Stranded Assets Interfere with Carbon Taxes to Achieve a Low Carbon Economy?


Assessing carbon lock-in (8 page pdf, Peter Erickson, Sivan Kartha, Michael Lazarus and Kevin Tempest, Environ. Res. Lett., Aug. 25, 2015)

Today we review the results of economic modeling which examined how high carbon emitters and their infrastructure and supporting networks tend to discourage attempts to transform society to a low carbon economy in time to avoid exceeding the 450 ppm/2 deg C warming that is the global target. Results show that coal fired power plants are the biggest obstacle world-wide and their lifetimes lasting decades also discourage early conversion to low catrbon. . The model also predicts what level of carbon price would make continued investment in these old technologies uneconomic. Coal power plants require a carbon tax above $30 US/tonne. Other stranded assets include gas power plants and combustion engine cars and their economic carbon tax trigger point is higher than for coal.

overcommitted emissions

To see Key Quotes and Links to key reports about this post, click HERE

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