Strategies for reducing emissions and depositions in Central and Eastern European countries: The case of the Czech Republic

A detailed case study on developments and reduction of acidifying SO2 and NOx emissions from the energy system was conducted for the Czech Republic. Scenarios and the Energy Flow Optimization Model - Environment (EFOM-ENV) of the European Union (DG 12) were applied for the first time in the Czech Republic and were similar to those that were used in the other European country studies in preparation of the Second Sulphur Protocol. Czech SO2 emissions can be reduced at low marginal costs, but at high total national costs compared with e.g. the Netherlands. The main reasons for this are the high sulphur content of (brown) coal, that has a high share in national energy consumption, a relatively high energy intensity, low wages, and the fact that most Western countries already have reduced their SO2 emissions in the past. Marginal NOx emission reduction costs are similar to those of Western countries and national total NOx reduction costs are relatively high. In contrast with fuel switching, retrofitting of existing technologies is an attractive SO2 and NOx reduction option in the short term. High interest and discount rates due to capital scarcity increases emissions and emission reduction costs. Therefore, short term involvement of Western investors could lead to European cost-effective emission reduction. 17 figs., 5 tabs., 2 appendices, 20 refs