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Title:	Application of agent-based computational economic modeling approach in simulating decarbonization policies in the electricity sector in Malaysia
Authors:	Kazeem Alasinrin Babatunde (P73481)
Supervisor:	Fathin Faizal Said, Assoc. Prof.
Keywords:	Electric power production -- Environmental aspects Carbon dioxide mitigation Atmospheric carbon dioxide -- Environmental aspects Universiti Kebangsaan Malaysia -- Dissertations Dissertations, Academic -- Malaysia
Issue Date:	13-Jan-2020
Description:	Electricity is the backbone of almost every aspect of an economy��from industrial to commercial, to transport and agricultural sector. But the fast-growing demand for electricity, rapid resource depletion, and increasing share of coal in the energy mix are responsible for why the electricity sector accounts for more than one-third of Malaysia��s carbon emissions from fuel combustion. Electricity decarbonization is, therefore imperative and a future challenge. This study examines and analyses the current and potential policy interventions towards low carbon electricity production in Malaysia. Agent-based computational economics is one suitable novel modeling paradigm that overcomes the shortcomings of traditional methodologies such as econometrics, computable general equilibrium model, dynamic stochastic general equilibrium model, and so on. We construct a flexible agent-based model with seven types of agents (electricity producer, government, consumer and the environment, including three markets, electricity, fuel and carbon). A simulation toolbox is developed to explore the dynamics of the electricity sector under different scenarios between 2015 and 2050. Under the current policy scenarios, the simulation experiments reveal the dominance of coal in the energy mix except when renewable energy policy goal is achieved. In most cases, the implementation of natural gas subsidy (NGS) has been less ineffective in displacing coal and hence contribute little to the decarbonization process of the sector. If electricity demand growth can be maintained at 1.62% (energy efficiency (EE1)) per year and renewable energy policies (REP) is successfully implemented, emission intensity may be reduced up to 50% compared to the 2005 level. However, over the years, large scale adoption of renewable energy technologies has been hampered by the current economic atmosphere. A price on carbon could drive investment in RE and reduce emissions. To address this, an emission trading scheme (ETS) is proposed. Results are quite positive, in that, the emission intensity of the electricity sector when ETS is implemented together with EE2 and REP can be reduced up to 73% compared to 2005 level with the high-level deployment of renewable energies and moderate effects on wholesale electricity price. However, this can only be achieved by a timely transition to a full liberalized electricity market where ETS (if established) can cost-effectively bring down emissions. In combination with ETS, energy efficiency and conservation measures (EE2) and renewable energy promotion policies (REP) should be effectively maintained to drive the electricity sector towards successful decarbonization.,Certification of Masters/Doctoral Thesis" is not available
Pages:	175
Call Number:	TD195.E4B333 2020 tesis
Publisher:	UKM, Bangi
Appears in Collections:	Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

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