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Distributional and efficiency impacts of clean and renewable energy standards for electricity

We examine the efficiency and distributional impacts of greenhouse gas policies directed toward the electricity sector in a model that links a “top-down” general equilibrium representation of the U.S. economy with a “bottom-up” electricity-sector dispatch and capacity expansion model. Our modeling f...

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Bibliographic Details
Main Authors: Rausch, Sebastian (Author) , Mowers, Matthew (Author)
Format: Article (Journal)
Language:English
Published: May 2014
In: Resource and energy economics
Year: 2014, Volume: 36, Issue: 2, Pages: 556-585
DOI:10.1016/j.reseneeco.2013.09.001
Online Access:Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.reseneeco.2013.09.001
Verlag, lizenzpflichtig, Volltext: https://www.sciencedirect.com/science/article/pii/S0928765513000547
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Author Notes:Sebastian Rausch, Matthew Mowers

MARC

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520 |a We examine the efficiency and distributional impacts of greenhouse gas policies directed toward the electricity sector in a model that links a “top-down” general equilibrium representation of the U.S. economy with a “bottom-up” electricity-sector dispatch and capacity expansion model. Our modeling framework features a high spatial and temporal resolution of electricity supply and demand, including renewable energy resources and generating technologies, while representing CO2 abatement options in non-electric sectors as well as economy-wide interactions. We find that clean and renewable energy standards entail substantial efficiency costs compared to a carbon pricing policy such as a cap-and-trade program or a carbon tax, and that these policies are regressive across the income distribution. The geographical distribution of cost is characterized by high burdens for regions that depend on non-qualifying generation fuels, primarily coal. Regions with abundant hydro power and wind resources, and a relatively clean generation mix in the absence of policy, are among the least impacted. An important shortcoming of energy standards vis-à-vis a carbon pricing policy is that no revenue is generated that can be used to alter unintended distributional consequences. 
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