Marginal cost specification Clause Samples

Marginal cost specification. The marginal cost of hydrogen production by SMR (cs) is a function of the gas price (pg), the technology efficiency (rhos), the CO2 emission factor (es) and the CO2 price on the ETS, which is cs(σ, pg) = pgρs . esσ. (2.3) Vaporformers can receive free allocations of emission permits (current situation). These subsidies reduce their marginal cost of CO2 emissions like a unit subsidy. Therefore, if we note a < [0; es] this unit subsidy, the marginal cost of production of the steam reforming technology can be rewritten as