Plant 1: Gas Plant releasing 2,400,000 tons of CO2/year
Abatement Approach Tons Removed/Year Cost per Ton
Carbon Sequestation 30,000 $20
Heat Rate Improvement 1,200,000 $50
Efficiency Improve ment 95,000 $70
Increase in lower emitting capacity 2,500 $190
Plant 2: Gas Plant releasing 90,000 tons of CO2/year
Abatement Approach Tons Removed/year Cost Per Ton
Efficiency Improvement 18,000 $35
Carbon Sequestrain 12,000 $45
Fuel switching/construction of wind Capacity 40,000 $130
Plant 3: Coal Plant releasing 2,740,000 tons of CO2/year
Abatement Approach Tons Removed/Year Cost Per Ton
Carbon Sequestration 26,000 $30
Efficiency Improvements 70,000 $60
Fuel Switching 190,000 $85
Waste Heat Recovery 540,000 $140
A wants to reduce CO2 emissions by 1,569,000 tons per year (approximately a 30% reduction). They are looking at alternative approaches to achieving this goal, and are interested in comparing the costs of command-and-control to the least-cost solution to achieving this abatement level.
a) Command-and-control: Each plant must reduce their annual CO2 emissions by 30%. Please complete the following table.
Plant1 Plant2 Plant3 Total
Remaining emissions (tons)
Total cost of abatement
b) Least-Cost solution: What is the least cost at which the 30% abatement level could be achieved? Complete the following table to indicate how much each plant would abate and the costs of this abatement using least-cost methods.
c) What policies might you recommend to arrive at the least-cost solution? What are some of the pros and cons of each?
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