Carbon pricing, whether through trading or taxes, is considered one of the most important policies to reduce emissions. A price on carbon increases the operating costs of high carbon fuels relative to lower-carbon alternatives. This post introduces an index (termed Coal to Clean Carbon Price Index – C3PI) for approximating the carbon price required to leapfrog fossil gas and support an electricity system predominantly supplied by variable renewable energy.

Fuel switch costs in electricity have historically been analysed through coal and fossil gas generation prices.

Carbon Price Index for Coal-to-Clean Electricity | Devamı>>>