Question 2: what is the upper limit for willingness to pay for CO2 emission? Data: A coal plant has the following characteristics: Generation capacity 600MW fuel efficiency 48% energy content 30.00 GJ per ton

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Question 2: what is the upper limit for
willingness to pay for CO2 emission?
Data: A coal plant has the following
characteristics:
Generation capacity 600MW
fuel efficiency 48%
energy content 30.00 GJ per ton
coal price 50.00 $/ton
Electricity price 45 $/ton
CO2 emission factor 2.50 ton CO2 per ton
coal
if the electricity price is 50 $/MWh, then what
is the upper limit for willing to pay for CO2
emission?
possible answers :
a. 20 $/ ton CO2
b. 52 $/ton CO2
C. 42 $/ ton CO2
d. 97 $/ ton CO2
Transcribed Image Text:Question 2: what is the upper limit for willingness to pay for CO2 emission? Data: A coal plant has the following characteristics: Generation capacity 600MW fuel efficiency 48% energy content 30.00 GJ per ton coal price 50.00 $/ton Electricity price 45 $/ton CO2 emission factor 2.50 ton CO2 per ton coal if the electricity price is 50 $/MWh, then what is the upper limit for willing to pay for CO2 emission? possible answers : a. 20 $/ ton CO2 b. 52 $/ton CO2 C. 42 $/ ton CO2 d. 97 $/ ton CO2
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