Discussion Paper - Harvard Project on Climate Agreements, Belfer Center
Electricity Markets and the Clean Power Plan
Introduction
The Environmental Protection Agency issued a final rule that defines a broad and complicated set of standards for controlling carbon dioxide (CO2) emissions from affected electricity generating units. (Environmental Protection Agency, 2015b) The proposed national average reduction by 2030 is 32% from the 2005 level of emissions, about half of which has already occurred. (Environmental Protection Agency, 2015j) The rules for new power plants are relatively straightforward and imply little more than reinforcing the current economic choice of natural gas over coal fired generation, given current projections for the price of natural gas. The Clean Power Plan rules for existing power plants arise under a different section of the Clean Air Act and present a more complicated picture. The result has implications for the nature and degree of future limitations on carbon dioxide emissions from the electricity sector. In addition, some versions of the possible implementation plans could have material implications for the operations of Regional Transmission Organizations under the regulations of the Federal Energy Regulatory Commission. The purpose here is to highlight some of the possible directions for relevant policies of electricity system operators.
William W. Hogan, Harvard University
For more information on this publication:
Please contact
Harvard Project on Climate Agreements
For Academic Citation:
Hogan, William W.. “Electricity Markets and the Clean Power Plan.” Discussion Paper, 2015-79, Harvard Project on Climate Agreements, Belfer Center, October 2015.
- Recommended
- In the Spotlight
- Most Viewed
Recommended
Paper
- Belfer Center for Science and International Affairs, Harvard Kennedy School
Prospects for Direct Air Carbon Capture and Storage: Costs, Scale, and Funding
Audio
- Harvard Environmental Economics Program
Previewing COP 28: A Conversation with Nat Keohane
Analysis & Opinions
- Belfer Center for Science and International Affairs, Harvard Kennedy School
Event Debrief: Social Cost of Carbon Could be Significantly Underestimated, Says Environmental Economist Frances Moore
In the Spotlight
Most Viewed
Analysis & Opinions
- Belfer Center for Science and International Affairs, Harvard Kennedy School
The Impact of Henry Kissinger
Analysis & Opinions
- Belfer Center for Science and International Affairs, Harvard Kennedy School
The Real-Life Events of "Oppenheimer"
Analysis & Opinions
- Foreign Affairs
Why Israel Slept
Introduction
The Environmental Protection Agency issued a final rule that defines a broad and complicated set of standards for controlling carbon dioxide (CO2) emissions from affected electricity generating units. (Environmental Protection Agency, 2015b) The proposed national average reduction by 2030 is 32% from the 2005 level of emissions, about half of which has already occurred. (Environmental Protection Agency, 2015j) The rules for new power plants are relatively straightforward and imply little more than reinforcing the current economic choice of natural gas over coal fired generation, given current projections for the price of natural gas. The Clean Power Plan rules for existing power plants arise under a different section of the Clean Air Act and present a more complicated picture. The result has implications for the nature and degree of future limitations on carbon dioxide emissions from the electricity sector. In addition, some versions of the possible implementation plans could have material implications for the operations of Regional Transmission Organizations under the regulations of the Federal Energy Regulatory Commission. The purpose here is to highlight some of the possible directions for relevant policies of electricity system operators.
William W. Hogan, Harvard University
- Recommended
- In the Spotlight
- Most Viewed
Recommended
Paper - Belfer Center for Science and International Affairs, Harvard Kennedy School
Prospects for Direct Air Carbon Capture and Storage: Costs, Scale, and Funding
Audio - Harvard Environmental Economics Program
Previewing COP 28: A Conversation with Nat Keohane
Analysis & Opinions - Belfer Center for Science and International Affairs, Harvard Kennedy School
Event Debrief: Social Cost of Carbon Could be Significantly Underestimated, Says Environmental Economist Frances Moore
In the Spotlight
Most Viewed
Analysis & Opinions - Belfer Center for Science and International Affairs, Harvard Kennedy School
The Impact of Henry Kissinger
Analysis & Opinions - Belfer Center for Science and International Affairs, Harvard Kennedy School
The Real-Life Events of "Oppenheimer"
Analysis & Opinions - Foreign Affairs
Why Israel Slept