ECON783 2022 Assignment 1 Part A (40 marks)
能源经济代写 Question 1 (15 marks)Consider an electricity market where the base of the demand curve is vertical and varies linearly between 2000MW and 8000MW
[NB Part B is (40 mars). TOTAL A&B (40 marks)]
Question 1 (15 marks)
Consider an electricity market where the base of the demand curve is vertical and varies linearly between 2000MW and 8000MW (so is equally likely to be found anywhere in that range). If demand and supply don’t intersect the system operator sets the price to be VOLL=$1,000.
|Technology||FC per MWh||Variable costs per MWh||Carbon Emissions
in tonnes per MW
(a) Write the formula d(s) for the demand duration curve for demand curve assuming no outage hours. (1 mark)
(b) What is the duration needed for a price spike of $1,000 for the peak plant to just cover its costs (2 marks)? 能源经济代写
(b) What is the optimal amount of base load plant that should be built? (2 marks)
(c) What is optimal amount of mid load capacity? (2 marks)
(d) Find how much total capacity should be built and hence peak capacity? (2 mark)
(e) Draw the demand duration curve (1 mark).
(f) Draw the competitive supply curve (1 mark).
(f) Draw the price duration curve (1 marks).
(g) Show all plants just cover costs (3 marks).
Question 2 (10 marks)
(a) Suppose now the government imposes a tax of $10 a tonne and that capacity does not adjust. What is the average capacity factor of the peak and mid-merit plants?
What are the carbon emissions on average per hour? How much does the average price increase? (5 marks)
(b) Find the optimal capacity mix supposing that capacity mix adjusts in the long run to the tax. What is the average price now? What are carbon emissions now? (5 marks)
Question 3 (15 marks) 能源经济代写
(a) Suppose there are three sectors in the NZ economy –transport, electricity and agriculture. The marginal abatement cure for agriculture is MACA =25XA , for transport MACT=12XT and for electricity it is MACE=5XE. Initial emissions for electricity are 8 Mt, for transport 24Mt and for agriculture they are 28Mt. Total emissions are 60Mt.
(i)Derive and draw the economy wide marginal abatement curve. [hint. remember the most any sector can abate emissions is up to total initial emissions]. Note points of interest on your graph. (5 marks)
(ii) What carbon tax would be needed to ensure a 50% reduction in emissions? (2 marks)
(iii) What is the abatement for each sector to achieve the 50% reduction in emissions, (2 marks)
(iv) Calculate total costs. (2 marks)
(v) Suppose the government decided not to include agriculture (so no carbon tax on agriculture is imposed). Calculate the tax needed for the two remaining sectors to achieve 50% reduction (30Mt) and total costs now as well as the abatement for each sector. (2 marks)
(vi) What is the difference in total costs between (iv) and (v). Comment. (2 marks)
ECON 783 En-Road assignment (40 marks) 能源经济代写
Assignment: Simulating Climate Futures in En-ROADS
In this assignment, you will work with the En-ROADS simulation model (developed by Climate Interactive and MIT Sloan Sustainability Initiative) to create a scenario that can mitigate global warming to the internationally agreed target of less than 2°C. In addition, you will consider the economic, political, and social issues relevant to successful implementation of your policies.
- Access En-ROADS at https://en-roads.climateinteractive.org/. Review these materials to help you understand how to use this model:
- 20-minute introductory video to En-ROADS
- Quick Guide to the En-ROADS policy levers
- Develop a scenario to meet your goals. Use En-ROADS to develop your vision of how to successfully limit global warming to less than 2°C per the Paris Agreement. Ensure your scenario factors in the goals listed below.
- Submit a writeup expressing your vision. After developing your preferred scenario, write a thoughtful and concise response to the questions below. Develop your vision and approach on the issues. Instructions on how to format your writeup are at the end of this document.
Your Goals 能源经济代写
Your mission is to recommend a set of global policies, investments, and actions that meet these five goals as much as possible:
1.Limit global warming.
Global warming above 1.7°C will cause dangerous and irreversible impacts that will harm our prosperity, security, health, and lives. Limiting warming to less than 1.7°C is not without challenges either (we are already seeing impacts today), however it is a benchmark by which scientists and world leaders believe we can lower the risks to a more manageable level.
2.Preserve and create a healthy economy.
Your policies should strive to lead a global energy transition that would preserve and create a healthy global economy. You must decide how to balance the short-term costs of climate actions with the long-term costs of damages from climate inaction. Note that financial costs are not explicitly predicted in the model as they are uncertain and controversial. You may offer your own hypotheses on the financial impacts of different decisions.
While assessing the economics, also consider the potential to offset short-term costs with additional co-benefits e.g., benefits to the economy, public health, national security and other areas which could provide benefits on top of the direct benefits of mitigating global warming.
3.Promote equity and a just transition. 能源经济代写
Consider the impacts of your policies for both high-income and low-income nations, and between the rich and poor people within nations. Consider whether your policies will disproportionately harm certain groups and how to mitigate such harms (e.g., if you favor policies that would reduce or shut down fossil fuel use, how will your policies address the resulting unemployment of people employed by the fossil fuel industry?). Also consider how opportunities for the new green economy can be shared more equitably and not leave marginalized groups behind.
4.Protect the environment.
Many environmental challenges besides climate change threaten human welfare—e.g., water shortage, air and water pollution (smog, particulates), soil loss, plastic pollution, anoxic zones (dead zones) in rivers and oceans, extinction of species, etc. Your proposals should minimize other harmful effects on the environment.
5.Be realistic but not cynical.
Imagine a scenario of what could be possible if human civilization operates at its best.
Your Tool: En-ROADS 能源经济代写
You will be testing your recommendations using the En-ROADS simulation model. En-ROADS is an interactive tool for simulating the long-term impacts of policy actions available to mitigate global warming e.g., policies affecting energy supply, energy efficiency, carbon emissions prices, land use, and other crucial factors that can mitigate greenhouse gas emissions. En-ROADS is grounded in the best available peer-reviewed science about climate impacts, solutions and the complex interactions of the climate, energy, land, population and economic systems.
Please note: En-ROADS is a global model, which means that the policy levers simulate if the action were applied to the whole world. En-ROADS does not attempt to address the complex nuances of how different countries and political groups might respond to each policy. En-ROADS is solely focused on the physical science of the feasibility and impacts of each solution.
More information on En-ROADS is available at:
Your Write-up 能源经济代写
Write a memo describing your proposals. Please respond to all the questions and organize your writeup into the following sections. There is no minimum or maximum length for your write-up. Create a compelling analysis with clear and focused writing.
Section 1: Plan
- Summarize your plan using the template provided at the end of this document. You may choose to share screenshots of specific graphs that caught your attention and are worth noting.(5 marks)
Policies. (5 marks) What are the top three most important parts of your strategy? (For example, the most important sliders that you moved). Explain policies that could implement your plan.
Section 2: Meeting the Goals (10 marks)
- Climate: How well do you think your proposal does in meeting the Paris climate goals? If it does not meet the goal, why is this acceptable to you?
- Economy: If the world followed your recommendations, how would the economy be different at different points in the future e.g., 2030, 2050 and 2100? In what ways would it be better? In what ways would it be worse?
- Equity: How can your proposal strive to increase equity across nations and different peoples? 能源经济代写
- Environment: To what extent might your proposal mitigate other environmental challenges (e.g., biodiversity, pollution, water and air quality)? To what extent might your proposals cause or worsen other environmental problems?
- Realism without cynicism: What would it take for your proposal to be realized? What barriers might arise in the implementation of your proposals, and how might they be addressed? To get started, what actions and priorities are needed as soon as possible from businesses, civil society, governments, or the public?
Section 3: (20 marks)
Use En-Roads to help critically evaluate the New Climate Economy report. [I’ve uploaded to CANVAS in Climate Change module]
Start off with the 10 point action plan. What parts of it can you model. Which parts are more difficult. What is the expected emission path? Expected temperature by end of the century. Can you estimate the reduction of emissions from parts of plan which are 4 difficult to model in En-Roads. Using your proposed En-Road plan above what would you add to the New Climate Economy Report. Explain the pros and cons of the New Climate Economy plan. ( 500 words)
Use this template to present your plan in section 1 of your write-up:
- Provide a short, memorable name for your plan
- Paste a screenshot of the main En-ROADS interface showing your results
- Present bullet points summarizing your most important policies and outcomes
- Paste the text from Actions & Outcomes to document all the assumptions and policy settings you choose in your scenario. Access the “Actions & Outcomes” feature from the “View” menu.
- Optional – You may choose to share screenshots of up to three specific graphs that caught your attention and are worth noting. For each graph you share, please add a brief note about why.
The example below is illustrative only. Note that the policies shown in the example do not reduce expected global warming to below 2 degrees C. Your preferred strategy should attempt to do so.