Although various factors were blamed for the extended power outage on the ERCOT electricity grid in February 2021, no single problem fully explains the calamity. All forms of generation experienced capacity deratings, but failure to identify and address risks along fuel supply chains was a major contributor. Moreover, most proposed remedies do not fundamentally address…
Number 2
ISSN 2160-5890 (Online)
Marginal Emissions Pathways: Drivers and Implications
Governments frequently use policies that target the expansion of a clean technology to achieve greenhouse gas emissions mitigation goals, such as those submitted by countries under the Paris Agreement. As a result of direct and indirect market adjustments induced by a particular policy, marginal emissions from expanding a clean technology may vary in the amount…
Household Environmental Kuznets Curves: Evidence from Passenger Transport Emissions
This paper uses detailed survey microdata to test whether a non-monotonic relationship exists between income and carbon dioxide emissions at the household level for passenger transport in the United States. Although the literature on economy-wide Environmental Kuznets Curves (EKCs) is vast, sector-specific analysis of household transport emissions is less common, is subject to considerable controversy,…
What happened in Texas? Understanding the February 2021 blackouts and learning lessons to prepare the grid for extreme weather events: An introduction
From Diesel to Electric: Overcoming Grid Integration Challenges in the Medium- and Heavy-Duty Vehicle Sector
Decarbonizing the medium- and heavy-duty vehicle (MHDV) sector is crucial for a sustainable clean energy transition. This paper focuses on the challenges and opportunities associated with integrating medium- and heavy-duty electric vehicles (MHD EVs) into the electric grid. With large trucks and buses being responsible for a significant share of transportation-related greenhouse gas emissions, the…
Modeling CO2 Pipeline Systems: An Analytical Lens for CCS Regulation
Carbon Capture and Storage (CCS) is regularly depicted as a crucial technology to reduce the social cost of achieving carbon neutrality. However, its deployment critically depends on the installation of CO2 infrastructures. As the regulatory procedures governing their provision are yet to be clarified, this paper aims to assess the social and environmental impacts of…
Do auctions promote innovation in renewable energy technologies? An empirical analysis of solar PV
Innovation in low-carbon technologies and, particularly, renewable electricity technologies (RETs) will be a critical component of the decarbonised energy transition. RET innovation requires a wise combination of supply-push (R&D support) and demand-pull policies (support for deployment). Renewable energy auctions are currently the main instrument to support the deployment of renewable electricity capacity worldwide. Thus, auctions…
How Should We Think About Pricing Electricity in the Context of Potential Life-Threatening Weather Events?
This paper argues that in markets characterized by highly inelastic demand, such as markets for electricity, market-clearing can force some individuals—particularly those with limited financial resources—out of the market, subsequently exposing them to significant risk. In the particular case of abnormally cold temperatures, as with the Texas deep freeze, or particularly hot temperatures, as may…
Electric Vehicles are Good, Actually
Electric vehicles are the primary alternative to transportation based on internal combustion engines and the most promising route to decarbonization of light- and medium-duty transportation systems. A transition to electric vehicles does face important challenges in terms of scaling of battery production, charging infrastructure, and grid coordination, which may make aggressive EV targets difficult to…
Making Electricity Capacity Markets Resilient to Extreme Weather Events
The devastating 2021 blackout in Texas, among others, has highlighted the need to reform electricity markets to make them resilient to extreme weather events. We review related efforts by system planners and operators within electricity market contexts, focusing on Europe and the United States, and we analyze possible reforms to electricity capacity markets. To account…