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Promoting Clean Energy in the American Power Sector

  • Aldy, Joseph Edgar

Despite bipartisan interest in advancing American energy policy, comprehensive energy and climate legislation fell short in the Senate last year after passing in the House of Representatives in 2009. The difficulty of coming to broad agreement highlights the need for a more targeted and incremental approach. One promising intermediate step would be a technology-neutral national clean energy standard that applies to the U.S. power sector. This paper proposes a standard that would lower carbon dioxide emissions by as much as 60 percent relative to 2005 levels over twenty years, streamline the fragmented regulatory system that is currently in place, generate fiscal benefits, and help fund energy innovation. Through a simple design and transparent implementation, the National Clean Energy Standard would provide certainty about the economic returns to clean energy that would facilitate investment in new energy projects and lower the emission intensity of the power sector. It would also serve as an ambitious bridge to economy-wide energy and climate policy.

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File URL: http://dash.harvard.edu/bitstream/handle/1/4901643/Aldy_PromotingClean.pdf
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Paper provided by Harvard Kennedy School of Government in its series Scholarly Articles with number 4901643.

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Date of creation: 2011
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Publication status: Published in Hamilton Project Discussion Paper
Handle: RePEc:hrv:hksfac:4901643
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  1. Fischer, Carolyn & Newell, Richard, 2004. "Environmental and Technology Policies for Climate Mitigation," Discussion Papers dp-04-05, Resources For the Future.
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