Fig. 16 Regional breakdown of cumulative incremental investment cost in the s600 scenario by 2020 and 2050 relative to the reference scenario

In a sectoral breakdown, the power sector accounts for the largest share, followed by the transport sector (Fig. 17). The power generation and transport sectors account for 59 and 19 % of the total additional investment by 2020, respectively. The large investment in FCV after 2035 pushes up additional investment in the transport sector remarkably, to 30 % by 2050. Fig. 17 Sectoral breakdown of cumulative incremental investment cost in the s600 scenario by 2020 and 2050 relative to the reference scenario Total technological cost This section assesses the total technological cost. The total technological cost is composed of investment cost and operating cost, the latter of which includes selleck inhibitor JNK animal study energy cost and maintenance cost. Earlier, in “Investment cost,” we presented

quantitative estimates of the investment cost. Thus, our main focus here will be the operating cost and the sum of the investment cost and operating cost. GHG mitigation technologies may affect the operating cost in two ways, by decreasing it or increasing it. Typical among technologies that decrease the operating cost is energy-saving technology, which lowers the annual energy cost by lowering energy consumption. Typical among technologies that increase operating cost are those that consume extra energy to reduce GHG emissions, such as CCS. Another cause of increased energy cost is fuel switching from low-cost to high-cost fuel: the switch from coal to natural gas, for example, may raise the energy cost. Figure 18 shows the cumulative technological cost worldwide by 2050 in the s600 scenario relative to the reference scenario. Fig. 18 Cumulative incremental technological cost in the s600 scenario The two types of effect discussed above lead to different operating cost trends in different sectors. In the power sector, energy-saving, fuel-switching, and the introduction

of CCS all take place in the s600 scenario. Y 27632 The mixed effect leads to a decrease in the operating cost by 2050, but only a very small decrease relative to the increase of the investment cost. In the industrial sector, industries make the switch from coal to gas (see Fig. 11) and introduce CCS on a large scale in energy-intensive sectors such as iron, steel, and cement. As a consequence, the operating cost increases at an accelerated pace: by 2050, the additional operating cost is 1.9-fold higher than the additional investment cost. The operating cost in the buildings sector decreases over the long term, but this decrease is rather small relative to the increase of the investment cost. In contrast, we see a different trend, a significant decrease in the operating cost, in the transport sector.