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Greenhouse Gases Resulting from Grid-Connected Electricity Demand: Three Pillars and Scope Two

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Abstract

Many governments and businesses would like to minimize or eliminate the greenhouse gases that result from their purchases of power from electricity grids. Because electricity flows cannot be traced from purchasers back to specific generators, some regulators and users have proposed an approximation. Purchasers would be credited with using clean power if they contract for electricity generated by particular zero-carbon suppliers to the grid or purchase certificates accompanying that zero-carbon generation, so long as those arrangements meet three conditions, or “pillars”: The associated clean power must be generated (1) nearby, (2) during the same hour, and (3) from newly constructed power plants. Whether or not the three pillars are followed, existing or planned electricity generation meeting all three conditions is expected to account for 10 percent of US power in 2030. We show that the qualifying power would be cleaner than average, but not zero-carbon. Electricity purchases meeting the restrictions will have incremental emissions per megawatt hour 30 to 43 percent below unrestricted average emissions per megawatt hour. The three pillars could have additional climate benefits if demand for clean power exceeds the restricted supply, resulting in less total electricity demand or encouraging construction of new clean electricity capacity.

Suggested Citation

  • Karl Dunkle Werner & Arik Levinson, 2025. "Greenhouse Gases Resulting from Grid-Connected Electricity Demand: Three Pillars and Scope Two," Working Papers gueconwpa~25-25-01, Georgetown University, Department of Economics.
  • Handle: RePEc:geo:guwopa:gueconwpa~25-25-01
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    References listed on IDEAS

    as
    1. Stephen P. Holland & Matthew J. Kotchen & Erin T. Mansur & Andrew J. Yates, 2022. "Why marginal CO 2 emissions are not decreasing for US electricity: Estimates and implications for climate policy," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 119(8), pages 2116632119-, February.
    2. Michael A. Giovanniello & Anna N. Cybulsky & Tim Schittekatte & Dharik S. Mallapragada, 2024. "The influence of additionality and time-matching requirements on the emissions from grid-connected hydrogen production," Nature Energy, Nature, vol. 9(2), pages 197-207, February.
    3. Justin M. Bracci & Evan D. Sherwin & Naomi L. Boness & Adam R. Brandt, 2023. "A cost comparison of various hourly-reliable and net-zero hydrogen production pathways in the United States," Nature Communications, Nature, vol. 14(1), pages 1-13, December.
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    More about this item

    Keywords

    marginal emissions; climate change; renewable electricity;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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