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Regulating Greenhouse Gases from Coal Power Plants under the Clean Air Act

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  • Linn, Joshua

    (Resources for the Future)

  • Mastrangelo, Erin
  • Burtraw, Dallas

    (Resources for the Future)

Abstract

The Clean Air Act has assumed the central role in US climate policy, directing the development of regulations governing greenhouse gas emissions from existing coal-fired power plants. This paper examines the operation of coal-fired generating units over 25 years to estimate the marginal costs and potential magnitude of emissions reductions from improving their efficiency. We find that a 10 percent increase in coal prices causes a 0.2 to 0.5 percent heat rate reduction, broadly consistent with engineering assessments. We also find that coal prices have a significant effect on utilization. The results are used to compare cost-effectiveness of alternative policies.

Suggested Citation

  • Linn, Joshua & Mastrangelo, Erin & Burtraw, Dallas, 2013. "Regulating Greenhouse Gases from Coal Power Plants under the Clean Air Act," RFF Working Paper Series dp-13-05, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-13-05
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    efficiency; regulation; greenhouse gas; carbon dioxide; coal; performance standards;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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