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The environmental and efficiency effects of restructuring on the electric power sector in the United States: An empirical analysis

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  • Sharabaroff, Alexander
  • Boyd, Roy
  • Chimeli, Ariaster
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    Abstract

    Recent measures to restructure the electric power sector in different US states have raised the interest of policy makers, commentators, and the general public as to the actual impact of restructuring on both the economy and the environment. This paper focuses on two aspects of restructuring, namely its potential impact on the efficiency of electricity generation and air pollution. Our empirical results suggest that restructuring contributes to improved efficiency of electricity generation and better air quality through reduced electricity-induced sulfur dioxide (SO2) and carbon dioxide (CO2) emissions, although no effect was found for emissions of nitrous oxides (NOx). These results, in turn could have important implications for policy in this area.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 37 (2009)
    Issue (Month): 11 (November)
    Pages: 4884-4893

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    Handle: RePEc:eee:enepol:v:37:y:2009:i:11:p:4884-4893

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Electricity restructuring Generation efficiency Air pollution;

    References

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    1. Paul L. Joskow, 1997. "Restructuring, Competition and Regulatory Reform in the U.S. Electricity Sector," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 119-138, Summer.
    2. Joskow, Paul L., 2003. "The Difficult Transition to Competitive Electricity Markets in the U.S," Working paper 207, Regulation2point0.
    3. Joskow, Paul L., 2004. "Transmission Policy In The United States," Working paper 110, Regulation2point0.
    4. Palmer, Karen & Ando, Amy, 1998. "Getting on the Map: The Political Economy of State-Level Electricity Restructuring," Discussion Papers dp-98-19-rev, Resources For the Future.
    5. Grossman, Gene M & Krueger, Alan B, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 353-77, May.
    6. Richard J. Green, 2008. "Electricity Wholesale Markets: Designs Now and in a Low-carbon Future," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 95-124.
    7. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
    8. Burtraw, Dallas & Palmer, Karen, 2005. "The Environmental Impacts of Electricity Restructuring: Looking Back and Looking Forward," Discussion Papers dp-05-07, Resources For the Future.
    9. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
    10. Michael G. Pollitt, 2008. "The Future of Electricity (and Gas) Regulation in a Low-carbon Policy World," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 63-94.
    11. Webster, Mort & Paltsev, Sergey & Reilly, John, 2008. "Autonomous efficiency improvement or income elasticity of energy demand: Does it matter?," Energy Economics, Elsevier, vol. 30(6), pages 2785-2798, November.
    12. Kira R. Fabrizio & Nancy L. Rose & Catherine D. Wolfram, 2007. "Do Markets Reduce Costs? Assessing the Impact of Regulatory Restructuring on US Electric Generation Efficiency," American Economic Review, American Economic Association, vol. 97(4), pages 1250-1277, September.
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