Dynamic Optimal Control Strategy of CCUS Technology Innovation in Coal Power Stations Under Environmental Protection Tax
Chang Su, Xinxin Zha, Jiayi Ma, Boying Li, Xinping Wang
Abstract
Carbon capture, utilization, and storage (CCUS) technology is an essential technology for achieving low-carbon transformation and upgrading of the coal power industry. This study applies optimal control theory to analyze the dynamic optimization of CCUS technological innovation investment in coal power stations under environmental protection tax. A dynamic control model is constructed to analyze the investment decisions of firms at system steady-state equilibrium, and numerical simulations are performed. The study shows that under both profit maximization and social welfare maximization conditions, a distinct saddle-point steady-state; the environmental protection tax affects technological innovation investment in coal power stations, which in turn affects electricity prices; the learning rate of knowledge accumulation also impacts technological innovation investment: under the social welfare maximization condition, the investment levels in technological innovation, technology, and knowledge accumulation are higher than those under profit maximization.