Case studies of the potential effects of carbon taxation on the stone, clay, and glass industry

Technical Report · Tue Dec 01 00:00:00 EST 1992

DOI:https://doi.org/10.2172/6586947· OSTI ID:6586947

Bock, M J; Boyd, G A ^[1]; Rosenbaum, D I ^[2]; Ross, M H ^[3]

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1. Argonne National Lab., IL (United States). Environmental Assessment and Information Sciences Div.
2. Nebraska Univ., Lincoln, NE (United States). Dept. of Economics
3. Michigan Univ., Ann Arbor, MI (United States). Dept. of Physics

This case study focuses on the potential for a carbon tax ($25 and $100 per metric ton of carbon) to reduce energy use and associated carbon dioxide (CO[sub 2]) emissions in three subsectors of the stone, clay, and glass industry: hydraulic cement, glass and glass products, and other products. A conservation supply curve analysis found that (1) opportunities for reducing fossil fuel use in the subsectors are limited (15% reduction under $100 tax) and (2) the relationship between the tax and reduced CO[sub 2] emissions is nonlinear and diminishing. Because cement manufacturing produces a significant amount of CO[sub 2], this subsector was analyzed. A plant-level analysis found more opportunities to mitigate CO[sub 2] emissions; under a $100 tax, fossil fuel use would decrease 52%. (A conservative estimate lies between 15% and 52%). It also confirmed the nonlinear relationship, suggesting significant benefits could result from small taxes (32% reduction under $25 tax). A fuel share analysis found the cement industry could reduce carbon loading 11% under a $100 tax if gas were substituted for coal. Under a $100 tax, cement demand would decrease 17% and its price would increase 32%, a substantial increase for a material commodity. Overall, CO[sub 2] emissions from cement manufacturing would decrease 24--33% under a $100 tax and 10--18% under a $25 tax. Much of the decrease would result from the reduced demand for cement.

• Research Organization: Argonne National Lab., IL (United States). Environmental Assessment and Information Sciences Div.
• Sponsoring Organization: USDOE; USDOE, Washington, DC (United States)
• DOE Contract Number: W-31109-ENG-38
• OSTI ID: 6586947
• Report Number(s): ANL/EAIS/TM-91; ON: DE93012766
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
AIR POLLUTION CONTROL
FINANCIAL INCENTIVES
TAXES
CARBON DIOXIDE
POLLUTION ABATEMENT
CEMENT INDUSTRY
ENERGY CONSERVATION
CERAMICS INDUSTRY
DEMAND FACTORS
ENERGY CONSUMPTION
ENERGY EXPENSES
FOSSIL FUELS
GLASS INDUSTRY
CARBON COMPOUNDS
CARBON OXIDES
CHALCOGENIDES
CONTROL
ENERGY SOURCES
FUELS
INDUSTRY
OXIDES
OXYGEN COMPOUNDS
POLLUTION CONTROL
290200* - Energy Planning & Policy- Economics & Sociology