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Implications of a US electricity standard for final energy demand

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  • Healey, Stephen
  • Jaccard, Mark

Abstract

This paper analyzes the emissions impact of an emissions intensity standard (metric tons of CO2 per MWh of electricity) for the US power sector on US final energy demand — i.e. the manufacturing, residential, commercial, and transportation sectors. An emissions intensity standard, although geared towards the power sector, will have implications for these other sectors of the economy through its effect on economy-wide energy prices. Using a hybrid energy-economy simulation model (CIMS), we find the effect on aggregate emissions from final demand to mostly be small. However, after disaggregating final demand, we find significant changes in CO2e emissions for several of sub-sectors. Given that emissions reductions in final energy demand are needed alongside power sector reductions for the US to achieve deep emissions cuts, our findings provide needed insight as to whether these eventual reductions will be helped or hindered by a US electricity standard.

Suggested Citation

  • Healey, Stephen & Jaccard, Mark, 2016. "Implications of a US electricity standard for final energy demand," Energy Economics, Elsevier, vol. 60(C), pages 469-475.
    • Handle: RePEc:eee:eneeco:v:60:y:2016:i:c:p:469-475
    DOI: 10.1016/j.eneco.2016.08.020
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    References listed on IDEAS

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    1. Rose Murphy and Mark Jaccard, 2011. "Modeling Efficiency Standards and a Carbon Tax: Simulations for the U.S. using a Hybrid Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    2. Dallas Burtraw & Josh Linn & Karen Palmer & Anthony Paul, 2014. "The Costs and Consequences of Clean Air Act Regulation of CO2 from Power Plants," American Economic Review, American Economic Association, vol. 104(5), pages 557-562, May.
    3. Rivers, Nic & Jaccard, Mark, 2006. "Useful models for simulating policies to induce technological change," Energy Policy, Elsevier, vol. 34(15), pages 2038-2047, October.
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    Cited by:

    1. Ying Sun & Fengqin Liu & Huaping Sun, 2022. "Does Standardization Improve Carbon Emission Efficiency as Soft Infrastructure? Evidence from China," Energies, MDPI, vol. 15(6), pages 1-17, March.

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    More about this item

    Keywords

    Intensity standard; Final energy demand; Carbon emissions;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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