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With the Integrated Resources Planning Assessment (IRPA) model, implications of carbon tax and energy tax on technological selection, power price and environmental pollution in power industry of China were studied. This model is a least-cost generation planning model, with which the technological composition, electricity price and pollutant emission can be calculated by comparing the cost changes for different power generation options due to carbon and energy taxes. The primary simulation result shows that the levy of US$ 25/tC carbon tax or US$ 0.5/Mbtu energy tax can improve the power generation structure and greatly reduce CO2, SO2 and NOX emissions in power industry. Several advanced power generation technologies such as IGCC and NGCC are of competitive cost, and should be given priority in future planning of power industry.
With the Integrated Resources Planning Assessment (IRPA) model, implications of carbon tax and energy tax on technological selection, power price and environmental pollution in power industry of China were studied. This model is a least-cost generation planning model, with which the technological composition, electricity price and pollutant emission can be calculated by comparing the cost changes for different power generation options due to carbon and energy taxes. The primary simulation result shows that the levy of US $ 25 / tC carbon tax or US $ 0.5 / Mbtu energy tax can improve the power generation structure and greatly reduce CO2, SO2 and NOx emissions in power industry. Several advanced power generation technologies such as IGCC and NGCC are of competitive cost, and should be given priority in future planning of power industry.