The Role of Electricity for the Decarbonization of the Portuguese Economy - DGEP Technical Report

The objective of this work is to examine the environmental, economic, and distribution effects of carbon taxation and environmental tax reform policies in Portugal. Decarbonization of the Portuguese economy will necessarily be based on an increasing electrification of energy demand and the production of electricity from renewable energy resources. Carbon and energy pricing policies coupled with appropriate recycling of the carbon tax revenues can contribute towards the decarbonization of the Portuguese economy and an increase in the use of renewable energy resources in the production of electric power. In this work we provide full details as to the model, calibration, and simulation results within the economic framework of the DGEP model.