What are the average percapita fossil C emissions associated

What are the average per-capita fossil C emissions associated with electricity generation in the US (gC/person-d)? What fraction of US \'\'personal consumption expenditures\" do residential electricity sales represent? Among the economic ideas for promoting climate-protective actions is to institute a tax on fossil carbon. On the website for the \"Carbon Tax Center.\" the authors suggest a tax that would start at $55 per tonne C and rise with steady annual increments to $513 per tonne C a decade later (see http://www.carbontax.org/faq/, question 15). The proposed tax would be designed to be revenue neutral, in the sense that the income to the government from the tax would be offset through reducing other taxes. Applied throughout the economy, the tax would certainly have first-order effects of reducing overall electricity demand. It would also certainly cause a shift from high C sources to lower C alternatives. Assume that a $500/tC tax applies for the generation conditions summarized in Table 5.3a. What would be the additional cost per kWh to pay this tax for electricity generated by (i) coal and (ii) natural gas?

Solution

(b) . To find the average per capita fossil C emission:

Total fossil C emission in the US per year = 522 TgC/yr

                                                                    = 522 x10⁶ tC/yr (tones / year) (from table 5.3a)

Total population in the states (for 2015) = 320.9 million = 320.9 x 10⁶

Therefore, the average per capita fossil C emission per year would be :

(522 x 10⁶ ) / (320.9 x 10⁶ ) =   1.63 tC/person-year

Also, the average per capita fossil C emission(in gms) per day would be

1.63 x 10⁶ /365 = 4465.75 gC/person-day

(c) To find fraction of residential electricity sales:

Residential electricity sales = 178 x10⁹ $/yr

Personal consumption expenditure = $12.3 trillion = $12.3 x 10¹²  

Therefore, (178 x10⁹ / 12.3 x10¹² ) x 100 = 1.45%

Thus, 145% of personal consumption expenditure accounts for residential electricity sales.

(d) Tax rate = $500 /tC

(i) Total fossil C emission due to coal = 368 TgC/year = 368 x 10⁶ tC/yr

Thus, additional tax amount required = 368 x 10⁶ x 500 = 184 x 10⁹ $/yr

Now, generation of electricity using coal per year is = 1352 x 10⁹ KWh

Hence, additional cost required per KWh =   184 x 10⁹ / 1352 x 10⁹ = $ 0.1361

(ii) Similarly, Total fossil C emission due to natural gas = 144 TgC/year = 144 x 10⁶ tC/yr

Thus, additional tax amount required = 144 x 10⁶ x 500 = 72 x 10⁹ $/yr

Now, generation of electricity using natural gas per year is = 1333 x 10⁹ KWh

Hence, additional cost required per KWh =   72 x 10⁹ / 1333 x 10⁹ = $ 0.054