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Assessing the Impact of Exceptional Drought on Emissions and Electricity Generation: The Case of Texas

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  • Jamal Mamkhezri
  • Gregory L. Torell

Abstract

During the 2011 drought, Texas electricity prices rose as generators with water-intensive cooling technologies cut back production. We investigate the effect of exceptional drought on electricity supply and emissions using a fixed-effects model on intra-hourly ERCOT data from 2010 to 2017. We find that the effect of exceptional drought on electricity supply varies with the cooling technology type used by the generator. Generators with water-intensive cooling technologies respond to exceptional drought conditions by raising their average offer prices. However, generators that use dry cooling technologies do not raise offer prices but do increase the total quantity offer during exceptional drought periods. These changes in offer prices lead to lower emissions plants being dispatched during exceptional drought in ERCOT. Given that exceptional drought intensity and duration are forecasted to increase over the coming decades, our findings provide valuable insights for state policymakers seeking to regulate the electricity market in our study area.

Suggested Citation

  • Jamal Mamkhezri & Gregory L. Torell, 2022. "Assessing the Impact of Exceptional Drought on Emissions and Electricity Generation: The Case of Texas," The Energy Journal, , vol. 43(4), pages 159-178, May.
    • Handle: RePEc:sae:enejou:v:43:y:2022:i:4:p:159-178
    DOI: 10.5547/01956574.43.4.jmam
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    References listed on IDEAS

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    1. Jamal Mamkhezri & Jennifer A. Thacher & Janie M. Chermak & Robert P. Berrens, 2020. "Does the solemn oath lower WTP responses in a discrete choice experiment application to solar energy?," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 9(4), pages 447-473, October.
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    4. Jamal Mamkhezri & Leonard A. Malczynski & Janie M. Chermak, 2021. "Assessing the Economic and Environmental Impacts of Alternative Renewable Portfolio Standards: Winners and Losers," Energies, MDPI, vol. 14(11), pages 1-23, June.
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    Cited by:

    1. Wang, Ying & Zhou, Zhi & Betrie, Getnet & Zhang, Kaifeng & Yan, Eugene, 2025. "Power generation-cooling water Nexus: Impacts of cooling water shortage on power system operation - a simulation case study in Illinois, U.S," Applied Energy, Elsevier, vol. 377(PB).
    2. Jamal Mamkhezri & Mohsen Khezri, 2024. "Assessing the spillover effects of research and development and renewable energy on CO2 emissions: international evidence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(3), pages 7657-7686, March.

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