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Cutting Carbon, Take Two: A Brief Guide to Federal Electricity-Sector Climate Policy without Cap-and-Trade

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  • Joshua Linn
  • Nathan Richardson

Abstract

This paper explores federal policies, other than a carbon price, for reducing emissions from the electric power sector. These policies fall into two major categories: policies that encourage the development of non- or low-emitting energy sources, and regulatory policies under existing legal authority (primarily the Clean Air Act). The paper provides an overview of policy options and a few concrete proposals, along with a summary of insights from economists on their advantages and disadvantages. Economists generally disfavor investment subsidies, but comparing other policy options, including regulatory approaches, technology mandates, and production subsidies, is complex. Excluding existing clean generation from incentive policies is tempting but can lead to perverse outcomes. Copyright 2013, Oxford University Press.

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  • Joshua Linn & Nathan Richardson, 2013. "Cutting Carbon, Take Two: A Brief Guide to Federal Electricity-Sector Climate Policy without Cap-and-Trade," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(3), pages 377-397.
    • Handle: RePEc:oup:apecpp:v:35:y:2013:i:3:p:377-397
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    File URL: http://hdl.handle.net/10.1093/aepp/ppt019
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    Cited by:

    1. Palmer, Karen & Paul, Anthony, 2015. "A Primer on Comprehensive Policy Options for States to Comply with the Clean Power Plan," RFF Working Paper Series dp-15-15, Resources for the Future.

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