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Emissions savings from wind power generation: Evidence from Texas, California and the Upper Midwest

Author

Listed:
  • Daniel T. Kaffine

    (Division of Economics and Business, Colorado School of Mines)

  • Brannin J. McBee

    (Elustria Capital)

  • Jozef Lieskovsky

    (Bentek Energy LLC)

Abstract

Wind power has the potential to reduce emissions associated with conventional electricity generation. Using detailed, systemic hourly data of wind generation and emissions from plants in ERCOT (Texas), CAISO (California), and MISO (Upper Midwest), we estimate the SO₂, NOₓ and CO₂ emissions offset by wind generation in those territories. Our estimation strategy implicitly captures both the marginal unit of generation displaced by wind on the electrical grid, and the marginal emissions reduction from that displaced unit. Our results reveal substantial variation in emissions reduction by territory, which appear to be strongly driven by differences in the existing generation mix. While the environmental benefits from emissions reductions in the Upper Midwest roughly cover government subsidies for wind generation, environmental benefits in Texas and California fall short.

Suggested Citation

  • Daniel T. Kaffine & Brannin J. McBee & Jozef Lieskovsky, 2012. "Emissions savings from wind power generation: Evidence from Texas, California and the Upper Midwest," Working Papers 2012-03, Colorado School of Mines, Division of Economics and Business.
    • Handle: RePEc:mns:wpaper:wp201203
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    File URL: http://econbus-papers.mines.edu/working-papers/wp201203.pdf
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    References listed on IDEAS

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    Cited by:

    1. Martin D. Heintzelman & Carrie M. Tuttle, 2012. "Values in the Wind: A Hedonic Analysis of Wind Power Facilities," Land Economics, University of Wisconsin Press, vol. 88(3), pages 571-588.
    2. Daniel T. Kaffine, Brannin J. McBee, and Jozef Lieskovsky, 2013. "Emissions Savings from Wind Power Generation in Texas," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    3. Weigt, Hannes & Ellerman, Denny & Delarue, Erik, 2013. "CO2 abatement from renewables in the German electricity sector: Does a CO2 price help?," Energy Economics, Elsevier, vol. 40(S1), pages 149-158.
    4. Fell, Harrison & Linn, Joshua, 2013. "Renewable electricity policies, heterogeneity, and cost effectiveness," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 688-707.
    5. Joseph Cullen, 2013. "Measuring the Environmental Benefits of Wind-Generated Electricity," American Economic Journal: Economic Policy, American Economic Association, vol. 5(4), pages 107-133, November.
    6. Paul Miskelly, 2012. "Wind Farms in Eastern Australia — Recent Lessons," Energy & Environment, , vol. 23(8), pages 1233-1260, December.
    7. Paul, Anthony & Palmer, Karen & Woerman, Matt, 2014. "Designing by Degrees: Flexibility and Cost-Effectiveness in Climate PolicyAbstract: Substantially reducing carbon dioxide (CO2) emissions from electricity production will require a transformation of t," RFF Working Paper Series dp-14-05, Resources for the Future.
    8. Ellerman, Danny & Delarue, Erik & Weigt, Hannes, 2012. "CO2 Abatement from RES Injections in the German Electricity Sector: Does a CO2 Price Help?," Working papers 2012/14, Faculty of Business and Economics - University of Basel.
    9. Wichsinee Wibulpolprasert, 2016. "Optimal Environmental Policies And Renewable Energy Investment: Evidence From The Texas Electricity Market," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 7(04), pages 1-41, November.
    10. Wichsinee Wibulpolprasert, 2016. "Optimal Environmental Policies and Renewable Energy Investment in Electricity Markets," PIER Discussion Papers 47, Puey Ungphakorn Institute for Economic Research.
    11. Wheatley, Joseph, 2013. "Quantifying CO2 savings from wind power," Energy Policy, Elsevier, vol. 63(C), pages 89-96.

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