Federal policies for renewable electricity: Impacts and interactions
AbstractThree types of policies that are prominent in the federal debate over addressing greenhouse gas emissions in the United States are a cap-and-trade program (CTP) on emissions, a renewable portfolio standard (RPS) for electricity production, and tax credits for renewable electricity producers. Each of these policies would have different consequences, and combinations of these policies could induce interactions yielding a whole that is not the sum of its parts. This paper utilizes the Haiku electricity market model to evaluate the economic and technology outcomes, climate benefits, and cost-effectiveness of three such policies and all possible combinations of the policies. A central finding is that the carbon dioxide (CO2) emissions reductions from CTP can be significantly greater than those from the other policies, even for similar levels of renewable electricity production, since of the three policies, CTP is the only one that distinguishes electricity generated by coal and natural gas. It follows that CTP is the most cost-effective among these approaches at reducing CO2 emissions. An alternative compliance payment mechanism in an RPS program could substantially affect renewables penetration, and the electricity price effects of the policies hinge partly on the regulatory structure of electricity markets, which varies across the country.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 39 (2011)
Issue (Month): 7 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Renewable portfolio standard Renewable energy credits Cap-and-trade;
Other versions of this item:
- Palmer, Karen & Paul, Anthony & Woerman, Matt, 2011. "Federal Policies for Renewable Electricity: Impacts and Interactions," Discussion Papers dp-10-53, Resources For the Future.
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fischer, Carolyn & Preonas, Louis, 2010.
"Combining Policies for Renewable Energy: Is the Whole Less than the Sum of Its Parts?,"
dp-10-19, Resources For the Future.
- Fischer, Carolyn & Preonas, Louis, 2010. "Combining Policies for Renewable Energy: Is the Whole Less Than the Sum of Its Parts?," International Review of Environmental and Resource Economics, now publishers, vol. 4(1), pages 51-92, June.
- Palmer, Karen & Burtraw, Dallas, 2005.
"Cost-effectiveness of renewable electricity policies,"
Elsevier, vol. 27(6), pages 873-894, November.
- Burtraw, Dallas & Palmer, Karen, 2005. "Cost-Effectiveness of Renewable Electricity Policies," Discussion Papers dp-05-01, Resources For the Future.
- Carolyn Fischer, 2010. "Renewable Portfolio Standards: When Do They Lower Energy Prices?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 101-120.
- Wiser, Ryan & Bolinger, Mark, 2007. "Can deployment of renewable energy put downward pressure on natural gas prices?," Energy Policy, Elsevier, vol. 35(1), pages 295-306, January.
- Amigues, Jean-Pierre & Chakravorty, Ujjayant & Lafforgue, Gilles & Moreaux, Michel, 2012.
"Renewable Portfolio Standards and implicit tax-subsidy schemes: Structural differences induced by quantity and proportional mandates,"
IDEI Working Papers
698, Institut d'Économie Industrielle (IDEI), Toulouse.
- Amigues, Jean-Pierre & Chakravorty, Ujjayant & Lafforgue, Gilles & Moreaux, Michel, 2012. "Renewable Portfolio Standards and implicit tax-subsidy schemes: Structural differences induced by quantity and proportional mandates," TSE Working Papers 12-278, Toulouse School of Economics (TSE).
- Amigues, Jean-Pierre & Chakravorty, Ujjayant & Lafforgue, Gilles & Moreaux, Michel, 2012. "Renewable Portfolio Standards and implicit tax-subsidy schemes: Structural differences induced by quantity and proportional mandates," LERNA Working Papers 12.02.359, LERNA, University of Toulouse.
- Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013.
"Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries,"
Elsevier, vol. 52(C), pages 385-401.
- Felix Groba & Joe Indvik & Steffen Jenner, 2011. "Assessing the Strength and Effectiveness of Renewable Electricity Feed-in Tariffs in European Union Countries," Discussion Papers of DIW Berlin 1176, DIW Berlin, German Institute for Economic Research.
- Harmsen, Robert & Graus, Wina, 2013. "How much CO2 emissions do we reduce by saving electricity? A focus on methods," Energy Policy, Elsevier, vol. 60(C), pages 803-812.
- Rausch, Sebastian & Mowers, Matthew, 2014. "Distributional and efficiency impacts of clean and renewable energy standards for electricity," Resource and Energy Economics, Elsevier, vol. 36(2), pages 556-585.
- Latta, Gregory S. & Baker, Justin S. & Beach, Robert H. & Rose, Steven K. & McCarl, Bruce A., 2013.
"A multi-sector intertemporal optimization approach to assess the GHG implications of U.S. forest and agricultural biomass electricity expansion,"
Journal of Forest Economics,
Elsevier, vol. 19(4), pages 361-383.
- Latta, Gregory S. & Baker, Justin S. & Beach, Robert H. & Rose, Steven K. & McCarl, Bruce A., 2013. "A Multi-Sector Intertemporal Optimization Approach to Assess the GHG Implications of U.S. Forest and Agricultural Biomass Electricity Expansion," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150293, Agricultural and Applied Economics Association.
- Burtraw, Dallas & Palmer, Karen L., 2013. "Mixing It Up: Power Sector Energy and Regional and Regulatory Climate Policies in the Presence of a Carbon Tax," Discussion Papers dp-13-09, Resources For the Future.
- Xin-gang, Zhao & Tian-tian, Feng & Lu, Cui & Xia, Feng, 2014. "The barriers and institutional arrangements of the implementation of renewable portfolio standard: A perspective of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 371-380.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.