Analysis of carbon tax for CO2 mitigation in China´s power sector by modeling

With Copenhagen conference attracting the world´s attention, climate change has definitely gone into the list of the most pressing issues. Power sector, as the biggest contributor to the total CO₂ emission of China, is faced with tremendous pressure and challenge. The transformation of the whole sector based on the technological innovation and/or introduction appears to be indispensable, which is already recognized by domestic government. As a future-coming choice, carbon tax earns close attention and will be implemented in the near future. This study shows the changes to the energy mix by imposing carbon tax and the relative mitigation effects, as well as mitigation costs, applying a linear bottom-up optimization programming model (BOMCES). Regarding the task, two scenarios are set up here: Base Case and Carbon Tax Scenario. Based on the comparison of these scenarios, detailed but significant conclusions for policy decision are drawn up.