cost of CO2 emissions
Assuming that a carbon emissions trading system is established across all world regions in the longer term, the cost of CO2 allowances needs to be included in the calculation of electricity generation costs. Projections of emissions costs are even more uncertain than energy prices, and a broad range of future estimates has been made in studies. The CO2 costs assumed in 2050 are often higher than those included in this Energy [R]evolution study (99 $2010/tCO2), reflecting estimates of the total external costs of CO2 emissions. The CO2 cost estimates in the 2010 version of Energy [R]evolution were rather conservative (50 $2008/t). CO2 costs are applied in Kyoto Protocol Non-Annex B countries only from 2030 on.