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Emissions, Transmission, and the Environmental Value of Renewable Energy

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  • Fell, Harrison
  • Kaffine, Daniel T.
  • Novan, Kevin

Abstract

We examine how transmission congestion alters the environmental benefits provided by renewable generation. Using hourly data from the Texas and Mid-Continent electricity markets, we find that relaxing transmission constraints between the wind-rich areas and the demand centers of the respective markets conservatively increases the non-market value of wind by 31% for Texas and 13% for Mid-Continent markets. Much of this increase in the non-market value arises from a redistribution in where air quality improvements occur { when transmission is not constrained, wind offsets much more pollution from fossil fuel units located near highly populated demand centers.

Suggested Citation

  • Fell, Harrison & Kaffine, Daniel T. & Novan, Kevin, "undated". "Emissions, Transmission, and the Environmental Value of Renewable Energy," CEnREP Working Papers 283718, North Carolina State University, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:nccewp:283718
    DOI: 10.22004/ag.econ.283718
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    Keywords

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    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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