The paper analyses the impact of carbon tax on the fuel mix in the electricity industry when the Korean government, in compliance with the international agreement, introduces a carbon tax system to reduce the emission of carbon contents from the powe...
The paper analyses the impact of carbon tax on the fuel mix in the electricity industry when the Korean government, in compliance with the international agreement, introduces a carbon tax system to reduce the emission of carbon contents from the power generation in the country.
A series of simulation with three different scenarios is carried out and the simulation results confirm the assumption that(ⅰ) new tax brings about change in the generator's bidding price for electricity supply in the wholesale market, and (ⅱ) the proportion of natural gas in the fuel mix increases owing to it's relatively lower carbon contents.