CEES Working Paper Series

#9804     

Impacts of Energy Taxes and Cost of Carbon on Energy and Carbon Emissions Profiles of the US Cement Industry

Matthias Ruth , Junya Tanizaki, Brynhildur Davidsdottir
Center for Energy and Environmental Studies
and the Department of Geography
675 Commonwealth Avenue
Boston University

Abstract

This paper presents an assessment of the impacts that energy taxes and increased cost of carbon may have on energy use and emissions profiles of US Portland cement production. Time series data is used to endogenously specify changes in technologies and fuel mix within a dynamic computer model. The results of the model indicate under a wide range of assumptions that energy taxes and increased cost of carbon will stimulate energy efficiency improvements and reduce carbon emissions by the industry. However, if ­ as assumed here ­ policies that increase cost of carbon only affect fossil fuels and not other inputs into the production process, the effect of these policies on carbon emissions may be seriously reduced because of the prominent role that calcination of limestone has in the production of cement.

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