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Carbon dioxide mitigation costs for the Mexican power sector are calculated in order to compare the business as usual (BAU) scenario, based on natural gas capacity growth, to a transition scenario where electricity generation growth using natural gas after 2007 is replaced by renewable energies (solar, wind, hydro and biomass). The mitigation costs are obtained using the following parameters: natural gas price, discount rate and technological progress. The latter is expressed in terms of the anticipated decrease in capital costs, as reported in electricity generation technological literature. Our results show that when technological progress is considered, C[O.sub.2] mitigation costs decrease rapidly from 14 $/tC[O.sub.2] (in this paper $ express 1997 US dollars and t means metric tons) to zero when the price of natural gas nears 2.68 S/GJ, (for some readers, it can be useful to know that 1.0 US$1997/GJ is 1.19 US$2001/MMBTU) which is almost the same as the 2002 price. This means that for middle natural gas prices a 'no regrets' situation can be achieved. Our results also show that for prices higher than 2.80 $/GJ, the incorporation of the technological progress parameter transforms the transition scenario into a 'no regrets' scenario for all the discount rate values considered in this study.

Four scenarios are examined for the future of energy production in Mexico: oil, natural gas, renewable energy sources, and a transition from natural gas to renewable energy sources. The scenarios are assessed for their contributions to acid rain precursors and greenhouse gases up to 2025.

Carbon dioxide mitigation costs for the Mexican power sector are calculated in order to compare the business as usual (BAU) scenario, based on natural gas capacity growth, to a transition scenario where electricity generation growth using natural gas after 2007 is replaced by renewable energies (solar, wind, hydro and biomass). The mitigation costs are obtained using the following parameters: natural gas price, discount rate and technological progress. The latter is expressed in terms of the anticipated decrease in capital costs, as reported in electricity generation technological literature. Our results show that when technological progress is considered, CO2 mitigation costs decrease rapidly from 14 $/tCO2 (in this paper $ express 1997 US dollars and t means metric tons) to zero when the price of natural gas nears 2.68 $/GJ, (for some readers, it can be useful to know that 1.0 US$1997/GJ is 1.19 US$2001/MMBTU) which is almost the same as the 2002 price. This means that for middle natural gas prices a “no regrets” situation can be achieved. Our results also show that for prices higher than 2.80 $/GJ, the incorporation of the technological progress parameter transforms the transition scenario into a “no regrets” scenario for all the discount rate values considered in this study. [Copyright &y& Elsevier]

Considering that the world transport sector is the second largest contributor of global greenhouse gas (GHG) emissions due to energy use and the least decarbonized sector, it is highly recommended that all countries implement ambitious public policies to decarbonize this sector. In Mexico the transport sector generates the largest share of greenhouse gas emissions, in 2014 it contributed with 31.3% of net emissions. Two original scenarios for the Mexican transport sector, a no-policy baseline scenario (BLS) and a low carbon scenario (LCS) were constructed. In the LCS were applied 21 GHG mitigation measures, which far exceeds the proposals for reducing transport sector GHG emissions that Mexico submitted in its National Determined Contributions (NDC). As a result, the proposed LCS describes a sector transformation path characterized by structural changes in freight and passenger mobility, new motor technologies for mobility, introduction of biofuels, price signals, transportation practices and regulations, as well as urban planning strategies, which altogether achieve an accumulated reduction of 3166 MtCO2e in a 25 year period, producing a global net benefit of 240,772 MUSD and a GHG emissions' reduction of 56% in 2035 in relation to the BLS. [ABSTRACT FROM AUTHOR]