Policy model

Pollution, CO2 emission and environmental issues are being more and more critical. In order to motivates industry leaders to use clean methods of energy production, CO2 taxes are applied based on CO2 emitted. The aim of the policy model is to adapt the price of these CO2 taxes regarding CCS price and the environmental damage price.

Environmental damage price

Emitting CO2 and pollution in general cause different sorts of environmental damage. A price of these damages can be estimated, through the Damage model

CCS price

Carbon Capture and Storage regroups different technologies that aim to capture C02 emitted and then to stock it instead of releasing it in the atmosphere. It is a way to turn non-green energy way of production into zero-emission way of enery production (like coal burning, methan burning). However, this imply to construct plant, and cost money.

Policy result

In order to guide industry to green energy, CO2 taxes are adapted to be the maximum between CCS price and environmental damage price. In this way, it will always be better to invest into green energy or CCS, regarding money (and environment of course).