The influence of carbon price on fuel conversion strategy of power generation enterprises--A perspective of Guangdong province

The switch of coal to gas in power generation enterprises is of great significance for tackling air pollution and mitigating climate change. Under China's emissions trading system, power generation enterprises have incentives to switch to low-carbon clean power, and the cost-benefit of switching is the basis of their decision-making. To this end, this paper studied the impact of changes in carbon and fuel prices on switching prices. The results show that: (1) For per yuan increase in the amount of natural gas, coal, and carbon, the switching price increased 4.768, decreased 5.845 and decreased 0.9994 yuan, respectively. (2) The carbon price is relatively low, and the impact of it on switching price is small. (3) The fluctuation in the carbon price, coal price and the natural gas price has a hysteresis effect on switching price. (c) 2021 Elsevier Ltd. All rights reserved.

Automated summary

The switch from coal to gas in power generation enterprises is important for addressing air pollution and climate change, with cost-benefit being a key factor in decision-making. The study found that changes in fuel and carbon prices affect switching prices, with carbon prices having a relatively small impact and price fluctuations exhibiting a hysteresis effect on switching prices.