Title: The impacts of carbon pricing on the Brazilian power distribution sector

Authors: Rita De Cassia S. Ribeiro Torres; Celio Andrade; Sonia Maria Da Silva Gomes; Igor Souza Ribeiro

Addresses: School of Engineering, Federal University of Bahia (UFBA), Rua Prof. Aristídes Novis, 02 Federação, Salvador, 40.210-630, BA, Brazil ' School of Management, Federal University of Bahia (UFBA), Avenida Reitor Miguel Calmon, s/n Vale do Canela, Salvador, 40.110-903, Bahia, Brazil ' School of Accounting, Federal University of Bahia (UFBA), Avenida Reitor Miguel Calmon, s/n Vale do Canela, Salvador, 40.110-903, Bahia, Brazil ' Brazilian Ministry of Mines and Energy (MME), Esplanada dos Ministérios, Brasília, Distrito Federal, 70297-400, Brazil

Abstract: The implementation of instruments for carbon pricing has increased to achieve the goals set in the Paris Agreement with respect to the reduction of greenhouse gas emissions. Brazil has already expressed its interest in using carbon pricing as a method to meet its goals. This study aims to determine the impact of the implementation of internal carbon prices on the outturn of the Brazilian power distribution sector and on the energy tariff paid by end consumers. The results of this investigation, which includes data from 31 companies and scenarios with eight reference prices, show that the net income decreases by 1% when the carbon price is US$0.4 and the energy tariff increases by 1% when the carbon price is US$4. This study contributes to the implementation of carbon pricing by the Brazilian power distribution sector and the elaboration of future energy tariff regulations by policy makers. Suggestions for future studies are provided in the conclusions.

Keywords: climate change; power distribution sector; carbon pricing; GHG emissions; Brazil.

DOI: 10.1504/IJGW.2019.100174

International Journal of Global Warming, 2019 Vol.18 No.1, pp.37 - 60

Received: 22 Sep 2018
Accepted: 12 Mar 2019
Published online: 14 Jun 2019 *

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