ER100/PP184/ER200/PP284, Fall 2023 Problem Set #4 Total Points: 100 for ER110/PP184; 125 for ER200/PP284 1) Economic analysis [40 points for undergrad, 50 points for grad]: Electrifying heat and transport is an important step in decarbonizing the energy system - but does it make sense for individual consumers? Assumptions: electric grid has no emissions. emissions from natural gas are 121 per thousand cubic feet emissions from petroleum are 19 lbs per gallon carbon tax is $185 per ton interest rate is 4% (https://www.nature.com/articles/s41586-022-05224-9) 12,000 miles driven per year 35x10^6 BTU of heat required per year energy density of natural gas is 38MJ/m^3 energy density of petroleum is 5486MJ/barrel 1 mpge is 33.7kWh Heating Transportation Natural Gas Electric Heat Furnace Pump Petroleum Combustion Electric Vehicle Vehicle Capital Cost $2,000 $8,000 $25,000 $40,000 Operation and $50/y $75/yt $400/y $400/yt Maintenance Cost Fuel Cost $12/thousand cubic ft $0.14/kwh $3.50/gal $0.14/kwh Efficiency 80% 300% 25 mpg 100 mpge Lifespan 20yr 20yr 15yr 15yr a) What is the difference in the levelized cost of heating between a natural gas furnace and an electric heat pump? How would this change if a carbon tax is applied? [5 points] b) Calculate the levelized cost of transportation ($/mile) and the emissions (ton/mile) for a petroleum combustion vehicle and a battery electric vehicle. [10 points] c) What is the difference in the levelized cost of heating between a petroleum combustion vehicle and an electric vehicle? How would this change if a carbon tax of $185 is applied? [5 points] d) List three factors each for heat and transportation that this analysis ignores. [10 points] e) The assumption of zero emissions for the electric grid isn't currently true, but why might it be a good idea to assume this? [10 points GRAD ONLY]