Modeling a Clean Energy Standard for Electricity: Policy Design Implications for Emissions, Supply, Prices, and Regions
The electricity sector is responsible for roughly 40 percent of U.S. carbon dioxide (CO2) emissions, and a shift away from conventional coal-fired generation is an important component of the U.S. strategy to reduce greenhouse gas emissions. Toward that goal, several proposals for a clean energy standard (CES) have been put forth, including one espoused by the Obama administration that calls for 80 percent clean electricty by 2035 phased in from current levels of roughly 40 percent. This paper looks at the effects of such a policy on CO2 emissions from the electricity sector, the mix of technologies used to supply electricity, electricity prices, and regional flows of clean energy credits. The CES leads to a 30 percent reduction in cumulative CO2 emissions between 2013 and 2035 and results in dramatic reductions in generation from conventional coal. The policy also results in fairly modest increases on national electricity prices, but this masks a wide variety of effects across regions.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bryan K. Mignone & Thomas Alfstad & Aaron Bergman & Kenneth Dubin & Richard Duke & Paul Friley & Andrew Martinez & Matthew Mowers & Karen Palmer & Anthony Paul & Sharon Showalter & Daniel Steinberg & , 2012. "Cost-effectiveness and Economic Incidence of a Clean Energy Standard," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 3), pages -.
- Parry, Ian W.H. & Williams, Roberton C., 2011. "Moving U.S. Climate Policy Forward: Are Carbon Taxes the Only Good Alternative?," Discussion Papers dp-11-02, Resources For the Future.
- Lawrence Goulder, 1995. "Environmental taxation and the double dividend: A reader's guide," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(2), pages 157-183, August.
- Aldy, Joseph Edgar, 2011. "Promoting Clean Energy in the American Power Sector," Scholarly Articles 4901643, Harvard Kennedy School of Government.
- Burtraw, Dallas & Palmer, Karen & Kahn, Danny, 2010.
"A symmetric safety valve,"
Elsevier, vol. 38(9), pages 4921-4932, September.
- Palmer, Karen & Paul, Anthony & Woerman, Matt & Steinberg, Daniel C., 2011.
"Federal policies for renewable electricity: Impacts and interactions,"
Elsevier, vol. 39(7), pages 3975-3991, July.
- Palmer, Karen & Paul, Anthony & Woerman, Matt, 2011. "Federal Policies for Renewable Electricity: Impacts and Interactions," Discussion Papers dp-10-53, Resources For the Future.
When requesting a correction, please mention this item's handle: RePEc:rff:dpaper:dp-11-35. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster)
If references are entirely missing, you can add them using this form.