During 2000-2010,Thailand's energy intensity has rapidly increased because of fast economic growth which may correlate to an increment of electricity consumption and CO2emission during 2010-2030. Emission reduction in the power sector is a significant issue to develop a sustainable power system. The objectives of this study are to analyze impacts of CO2reduction targets on Thailand's power sector and to determine equivalent carbon taxation. Regarding optimization manner, the 2Asia Pacific Integrated Model (AIM/Enduse) was applied to several scenarios including Business-As-Usual scenario (BAU), 20% 40% and 60% of emission reduction targets, as well as, carbon taxation. In 2030, the cost optimization shows that when the reduction target is at 60% and a carbon tax of $200/tCO2, CCS technology is selected. © 2014 Published by Elsevier Ltd. Low-carbon society; CO2 mitigation; CO2 taxation; Thai power sector; AIM/Enduse