We evaluate the potential regional macroeconomic impacts of a set of ten greenhouse gas mitigation policy options intended to enable the Southern California Association of Governments to comply with the State’s greenhouse gas reduction targets. The Regional Economic Models, Inc. Policy Insight Plus Model, was applied in the analysis by carefully linking technical and microeconomic…
Volume 3
Climate policy, interconnection and carbon leakage: The effect of unilateral UK policy on electricity and GHG emissions in Ireland
This paper examines the effect of the UK’s unilateral policy to implement a carbon price floor in Great Britain for fossil-fuel based electricity generation on the adjoining electricity market in Ireland. We find that, subject to efficient use of interconnectors between the two markets and constant imports from France and the Netherlands, a carbon price…
Evaluation of Environmental Taxation on Multiple Air Pollutants in the Electricity Generation Sector – Evidence from New South Wales, Australia
This paper investigates the effects of environmental taxes on the emissions intensity (measured as mass per TWh) of Nitrogen Oxides (NOx), Sulfur Oxides (SOx), Coarse Particulate Matter (CPM) and Fine Particulate Matter (FPM) from electricity generators in New South Wales (NSW), Australia. Electricity generators in NSW are subject to environmental taxation on air pollution through…
How Should Different Countries Tax Fuels to Correct Environmental Externalities?
This essay discusses (based on a recent IMF study) how developed and developing countries alike might put into practice the principle of ‘getting prices right’ to address the major externalities from energy. The efficient set of taxes includes charges on fuel use for carbon and local pollution (with credits for emissions capture during combustion) and…
Optionality and Policymaking in Re-Transforming the British Power Market
Conventional models to support policymaking for the energy sector have been largely based on deterministic or static settings that focus on planning welfare- maximising investment pathways. But, in a liberalised market, since investments are made by competitive, profit-maximising companies, the increased intervention of government policy in the trading arrangements creates uncertain responses to incentives. Industry…
Germany’s Nuclear Phase Out – A Survey of the Impact since 2011 and Outlook to 2023
In this paper we analyze the effects of the German nuclear phase out, focusing on the seven nuclear power plants affected by the March 2011 moratorium, and continuing through the final phase out of the last plant in 2022. We provide an ex-post assessment of model analyses on the impact of the nuclear moratorium presented…
Regional Cooperation Potentials in the European Context: Survey and Case Study Evidence from the Alpine Region
The energiewende (“Energy Turnaround”) in Germany will occur within the context of setting up Europe’s internal electricity market. An important initial step will be to intensify regional cooperation between neighboring countries. We assert that the full benefits of regional cooperation will be realized by integrating Europe’s market segments, e.g., real-time, day ahead, reserve markets and…
Germany’s Nuclear Phase-out: Sensitivities and Impacts on Electricity Prices and CO2 Emissions
Following the nuclear meltdown in Fukushima Daiichi, in summer 2011 the German parliament decided to phase-out nuclear power by 2022. When this decision was taken, a number of model-based analyses investigated the influence this decision would have on electricity prices and CO2 emissions. They concluded that CO2 emissions would be kept at levels that are…
The German “Energiewende”—An Introduction
The German government’s multi-decade effort to transition to a low-carbon, renew-ables-based energy economy is now commonly known as “energiewende” (“energy transition”). The transition has four major objectives: increasing the share of renewables to at least 80% (in electricity) and 60% for total final energy consumption, reducing greenhouse gas emissions by 80-95% (basis: 1990), phasing out…
Do Consumers Want Smart Meters? Incentives or Inertia: Evidence from North Carolina and Lessons for Policy
In an effort to improve efficiency of electrical markets the U.S. government hopes to encourage changing household use patterns, such as dishwasher and clothes dryer use, to off-peak times. One strategy has been to subsidize the installation of smart meters. In addition the government has encouraged electrical energy conservation by providing incentives for energy saving…