Abstract

GARCIA NIEDMANN, Catalina  and  MARDONES POBLETE, Cristian. ANALYSIS OF A CO₂ TAX ON THERMOELECTRIC GENERATORS USING COST-EFFECTIVENESS INDICATORS. Rev. Int. Contam. Ambient [online]. 2020, vol.36, n.2, pp.333-349.  Epub May 04, 2021. ISSN 0188-4999.  https://doi.org/10.20937/rica.53406.

In 2017, Chile introduced a CO2 tax on emissions from fixed sources with a thermal power ≥ 50 MW. Therefore, this study uses cost-effectiveness indicators to assess whether investing in carbon capture and sequestration technology is an attractive option for each of the thermoelectric generators with the objective of reducing its CO2 emissions and tax burden. The results indicate that a tax of US$5/tCO2 is fully infective in reducing emissions because thermoelectric generators only reduce their emissions if taxes were set at approximately US$30/tCO2. Thus, it can be concluded that the current tax only serves for collecting rather than for reducing emissions.

Keywords : sequestration technology; carbon capture; carbon tax; green tax.