Weathervane
About Weathervane Archives Site Map Contact Us
 

PRINT this page
EMAIL this Page
CONTACT the Author
VIEW the Glossary

RFF Event
Link to RFF Event

Securing Our Future: The Economics and Ecology of Coal 
James E. Rogers, Chairman and CEO, Cinergy
An RFF Policy Leadership Forum
(May 18, 2004)

Link to Video

Related RFF Work
Link to RFF Multipollutant Work
Making Sense of Proposed Multipollutant Regulations and Legislation
Two tables detailing the features of EPA's Clean Air Interstate Rule (CAIR) and the companion Clean Air Mercury Rule (CAMR) coupled with a feature by feature comparison of the Clear Skies Initiative, the Jeffords Bill, and the Carper Bill.

From the Archives
The Paparazzi Take a Look at a Living Legend: The SO2 Cap-and-Trade Program for Power Plants in the United States
Dallas Burtraw and Karen Palmer
Discussion Paper 03-15
April 2003

Electricity Restructuring, Environmental Policy, and Emissions
Dallas Burtraw, Karen Palmer, Ranjit Bharvirkar, and Anthony Paul
RFF Report
December 2002

The Effect on Asset Values of the Allocation of Carbon Dioxide Emission Allowances
Dallas Burtraw, Karen L. Palmer, Ranjit Bharvirkar, and Anthony Paul
Discussion Paper 02-15
March 2002

Investment in Electricity Transmission and Ancillary Environmental Benefits
Cary Bloyd, Ranjit Bharvirkar, and Dallas Burtraw
Discussion Paper 02-14
March 2002

Ancillary Benefits of Reduced Air Pollution in the United States from Moderate Greenhouse Gas Mitigation Policies in the Electricity Sector
Dallas Burtraw, Alan Krupnick, Karen Palmer, Anthony Paul, Michael Toman, and Cary Bloyd
Discussion Paper 01-61
December 2001

The Effect of Allowance Allocation on the Cost of Carbon Emission Trading
Dallas Burtraw, Karen Palmer, Ranjit Bharvirkar, and Anthony Paul
Discussion Paper 01-30
August 2001

Carbon Emission Trading Costs and Allowance Allocations: Evaluating the Options
Dallas Burtraw
Resources, Fall 2001

Restructuring and Cost of Reducing NOx Emissions in Electricity Generation
Karen Palmer, Dallas Burtraw, Ranjit Bharvirkar, and Anthony Paul
Discussion Paper 01-10-REV, January 2001
Revised July 2001

 



Home > Solutions and Actions > United States >
Electricity Generation

As U.S. demand for electricity steadily rises, producers face a choice: Cheap energy will not be the cleanest, and clean energy may not be the cheapest. At present the electricity sector contributes about 40 percent of U.S. emissions of carbon dioxide, which means nearly 10 percent of world emissions. Generating technology has become a political issue in which the central question is how much consumers are prepared to pay for progress in reducing emissions.

At present, half of the United States' electricity is generated with coal. It's the least expensive and most easily accessible of all fuels, but it also produces the most carbon dioxide -- and other pollutants -- per unit of heat.

The alternatives aren't simple. Over the past several decades, some utilities built power plants to run on natural gas, which produces much less carbon dioxide in relation to its heat content. Almost a fifth of U.S. power now comes from gas. But that swing is a major reason for the huge increase in gas prices over the past several years, and thus the power industry is moving back toward greater reliance on coal.

Another possibility is nuclear energy, which produces another fifth of the power supply. But the U.S. political system does not seem to be able to resolve the disputes over what to do with radioactive waste from reactors. And greater reliance on nuclear energy raises immense questions of security, because of the technology's close association with nuclear weapons.

Oil is no longer generally used for electric generation, partly because of environmental reasons but mostly because of the instability of its price. As for hydroelectricity, all of the most promising sites for dams are already being exploited.

Renewable energy provided, in 2004, 2.3 percent of the country's electricity, a proportion that had not changed much of the previous decade. About half of the state governments have enacted legislation to push power plants toward greater use of renewables. While progress will be steady, it is unlikely to be rapid.

Federal policy is centered on support for research and development to reduce the pollution that coal causes. Congress has for many years funded clean coal projects. In early 2003, President Bush announced a project called FutureGen to build, over the next decade, a pilot plant to produce both electricity and hydrogen while sequestering the resulting carbon dioxide and other pollutants. The president promised that it would be the cleanest power plant in the world. But until it is much farther along, it will be difficult to know how much its power will cost.

Electricity restructuring, while currently stalled in the United States, could result in substantial changes in the mix of generation technologies employed to produce electricity, in the efficiency of power plant operations, and in the price and quantity of electricity traded in the marketplace.

Link to Discussion Paper   Too Good to Be True? An Examination of Three Economic Assessments of California Climate Change Policy
Robert N. Stavins, Judson Jaffe, and Todd Schatzki
07-12 | March 2007
     
     
Link to Discussion paper  

Modeling the Effects of Changes in New Source Review on National SO2 and NOx Emissions from Electricity-Generating Units

David A. Evans, Benjamin F. Hobbs, Craig Oren, and Karen L. Palmer

07-01 | March 2007

     
     
Link to slides  

Compensation Rules for Climate Policy in the Electricity Sector

Dallas Burtraw and Karen Palmer
National Bureau of Economic Research
July 27, 2006

     
     
Link to RFF Discussion Paper  

The Impact of Long-Term Generation Contracts on Valuation of Electricity Generating Assets under the Regional Greenhouse Gas Initiative

Nathan Wilson, Karen L. Palmer, and Dallas Burtraw

Discussion Paper 05-37
August 2005

RFF researchers examine the economic consequences of different methods for allocating emissions permits under the Regional Greenhouse Gas Initiative (RGGI).

   

 

     
 

From SO2 to Greenhouse Gases:
Trends and Events Shaping Future Emissions Trading Programs in the United States

Joseph Kruger

Discussion Paper 05-20
June 2005

   

 

     
 

Reducing Emissions from the Electricity Sector: The Costs and Benefits Nationwide and for the Empire State

Karen Palmer, Dallas Burtraw, and Jhih-Shyang Shih

Discussion Paper 05-23
June 2005
Executive Summary

     
     
 

Economics of Pollution Trading for SO2 and NOx

Dallas Burtraw, David A. Evans, Alan Krupnick, Karen Palmer, and Russell Toth

Discussion Paper 05-05
March 2005

     
     
 

Cost-Effectiveness of Renewable Electricity Policies

Karen Palmer and Dallas Burtraw

Discussion Paper 05-01
January 2005

     
     
 

Fiscal Interactions and the Costs of Controlling Pollution from Electricity

Ian W.H. Parry

Discussion Paper 04-27
July 2004

     
     
Link to Report  

Electricity, Renewables, and Climate Change: Searching for a Cost-Effective Policy

Karen Palmer and Dallas Burtraw

RFF Report
May 2004

The authors look at ways to enhance the contribution of renewable technologies to the U.S. electricity supply -- and reduce emissions of greenhouse gases from the electricity sector.

 

1616 P Street NW, Washington, DC 20036 Phone: 202.328.5000 email:weathervane@rff.org