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Technology Assumptions and Climate Policy: The Interrelated Effects of U.S. Electricity and Transport Policy

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  • Mark Jaccard
  • Suzanne Goldberg

Abstract

Although economists prefer a unique, economy-wide carbon price, climate policies are likely to continue to combine technology- and sector-specific regulations with, at best, some degree of carbon pricing. A hybrid energy-economy model that combines technological details with partial macro-economic feedbacks offers a means of estimating the likely effects of this kind of policy mix, especially under different scenarios of technological innovation. We applied such a model, called CIMS-US, in a model comparison project directed by the Energy Modeling Forum at Stanford University (EMF 24) and present here the interrelated effects of policies focused separately on electricity and transportation. We find that technological innovation encouraged by transportation regulation can inadvertently increase emissions from electricity generation and ethanol production to the extent that abatement from the regulation itself is effectively neutralized. When, however, regulation of electricity generation is combined with transportation policy or there is economy-wide carbon pricing, substantial abatement occurs.

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  • Mark Jaccard & Suzanne Goldberg, 2014. "Technology Assumptions and Climate Policy: The Interrelated Effects of U.S. Electricity and Transport Policy," The Energy Journal, , vol. 35(1_suppl), pages 89-100, June.
    • Handle: RePEc:sae:enejou:v:35:y:2014:i:1_suppl:p:89-100
    DOI: 10.5547/01956574.35.SI1.5
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    References listed on IDEAS

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    1. Axsen, Jonn & Mountain, Dean C. & Jaccard, Mark, 2009. "Combining stated and revealed choice research to simulate the neighbor effect: The case of hybrid-electric vehicles," Institute of Transportation Studies, Working Paper Series qt02n9j6cv, Institute of Transportation Studies, UC Davis.
    2. Chris Bataille, Mark Jaccard, John Nyboer and Nic Rivers, 2006. "Towards General Equilibrium in a Technology-Rich Model with Empirically Estimated Behavioral Parameters," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 93-112.
    3. Mau, Paulus & Eyzaguirre, Jimena & Jaccard, Mark & Collins-Dodd, Colleen & Tiedemann, Kenneth, 2008. "The 'neighbor effect': Simulating dynamics in consumer preferences for new vehicle technologies," Ecological Economics, Elsevier, vol. 68(1-2), pages 504-516, December.
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