Economic and energy impacts from participation in the regional greenhouse gas initiative: A case study of the State of Maryland

Matthias Ruth; Steven A. Gabriel; Karen L. Palmer; Dallas Burtraw; Anthony Paul; Yihsu Chen; Benjamin F. Hobbs; Daraius Irani; Jeffrey Michael; Kim M. Ross; Russell Conklin; Julia Miller

doi:10.1016/j.enpol.2008.03.012

Economic and energy impacts from participation in the regional greenhouse gas initiative: A case study of the State of Maryland

Matthias Ruth^*, Steven A. Gabriel, Karen L. Palmer, Dallas Burtraw, Anthony Paul, Yihsu Chen, Benjamin F. Hobbs, Daraius Irani, Jeffrey Michael, Kim M. Ross, Russell Conklin, Julia Miller

^*Corresponding author for this work

Vice Chancellor's Office

Research output: Contribution to journal › Article › peer-review

Abstract

Tradable emissions allowance systems to reduce carbon emissions are increasingly promoted as means to mitigate climate change. This paper briefly reviews the application of such systems at the global, regional, and corporate scales. Given the recent expansion of cap-and-trade systems at the regional level, the paper concentrates on energy and economic implications at that level, using the decision of the State of Maryland, USA, to join the Regional Greenhouse Gas Initiative as an illustration. The paper presents the results of an analysis of the implications for technology choice, generation capacity, energy reliability, and cost to ratepayers of that decision, combining a national electricity market model with a regional model that includes market power and an economic impact model. The results suggest several issues that will be key to the acceptability and effectiveness of cap-and-trade systems for regional climate change mitigation policy, including rules for distribution of allowances and subsidies for energy efficiency programs.

Original language	English
Pages (from-to)	2279-2289
Number of pages	11
Journal	Energy policy
Volume	36
Issue number	6
DOIs	https://doi.org/10.1016/j.enpol.2008.03.012
Publication status	Published - Jun 2008

Keywords

Cap-and-trade
Climate change policy
Regional greenhouse gas initiative

Access to Document

10.1016/j.enpol.2008.03.012

Cite this

@article{7d32f0be90a24295aaf11549b25648bc,

title = "Economic and energy impacts from participation in the regional greenhouse gas initiative: A case study of the State of Maryland",

abstract = "Tradable emissions allowance systems to reduce carbon emissions are increasingly promoted as means to mitigate climate change. This paper briefly reviews the application of such systems at the global, regional, and corporate scales. Given the recent expansion of cap-and-trade systems at the regional level, the paper concentrates on energy and economic implications at that level, using the decision of the State of Maryland, USA, to join the Regional Greenhouse Gas Initiative as an illustration. The paper presents the results of an analysis of the implications for technology choice, generation capacity, energy reliability, and cost to ratepayers of that decision, combining a national electricity market model with a regional model that includes market power and an economic impact model. The results suggest several issues that will be key to the acceptability and effectiveness of cap-and-trade systems for regional climate change mitigation policy, including rules for distribution of allowances and subsidies for energy efficiency programs.",

keywords = "Cap-and-trade, Climate change policy, Regional greenhouse gas initiative",

author = "Matthias Ruth and Gabriel, {Steven A.} and Palmer, {Karen L.} and Dallas Burtraw and Anthony Paul and Yihsu Chen and Hobbs, {Benjamin F.} and Daraius Irani and Jeffrey Michael and Ross, {Kim M.} and Russell Conklin and Julia Miller",

year = "2008",

month = jun,

doi = "10.1016/j.enpol.2008.03.012",

language = "English",

volume = "36",

pages = "2279--2289",

journal = "Energy policy",

issn = "0301-4215",

publisher = "Elsevier",

number = "6",

}

TY - JOUR

T1 - Economic and energy impacts from participation in the regional greenhouse gas initiative

T2 - A case study of the State of Maryland

AU - Ruth, Matthias

AU - Gabriel, Steven A.

AU - Palmer, Karen L.

AU - Burtraw, Dallas

AU - Paul, Anthony

AU - Chen, Yihsu

AU - Hobbs, Benjamin F.

AU - Irani, Daraius

AU - Michael, Jeffrey

AU - Ross, Kim M.

AU - Conklin, Russell

AU - Miller, Julia

PY - 2008/6

Y1 - 2008/6

N2 - Tradable emissions allowance systems to reduce carbon emissions are increasingly promoted as means to mitigate climate change. This paper briefly reviews the application of such systems at the global, regional, and corporate scales. Given the recent expansion of cap-and-trade systems at the regional level, the paper concentrates on energy and economic implications at that level, using the decision of the State of Maryland, USA, to join the Regional Greenhouse Gas Initiative as an illustration. The paper presents the results of an analysis of the implications for technology choice, generation capacity, energy reliability, and cost to ratepayers of that decision, combining a national electricity market model with a regional model that includes market power and an economic impact model. The results suggest several issues that will be key to the acceptability and effectiveness of cap-and-trade systems for regional climate change mitigation policy, including rules for distribution of allowances and subsidies for energy efficiency programs.

AB - Tradable emissions allowance systems to reduce carbon emissions are increasingly promoted as means to mitigate climate change. This paper briefly reviews the application of such systems at the global, regional, and corporate scales. Given the recent expansion of cap-and-trade systems at the regional level, the paper concentrates on energy and economic implications at that level, using the decision of the State of Maryland, USA, to join the Regional Greenhouse Gas Initiative as an illustration. The paper presents the results of an analysis of the implications for technology choice, generation capacity, energy reliability, and cost to ratepayers of that decision, combining a national electricity market model with a regional model that includes market power and an economic impact model. The results suggest several issues that will be key to the acceptability and effectiveness of cap-and-trade systems for regional climate change mitigation policy, including rules for distribution of allowances and subsidies for energy efficiency programs.

KW - Cap-and-trade

KW - Climate change policy

KW - Regional greenhouse gas initiative

UR - http://www.scopus.com/inward/record.url?scp=43249086922&partnerID=8YFLogxK

U2 - 10.1016/j.enpol.2008.03.012

DO - 10.1016/j.enpol.2008.03.012

M3 - Article

AN - SCOPUS:43249086922

VL - 36

SP - 2279

EP - 2289

JO - Energy policy

JF - Energy policy

SN - 0301-4215

IS - 6

ER -

Economic and energy impacts from participation in the regional greenhouse gas initiative: A case study of the State of Maryland

Abstract

Keywords

Access to Document

Other files and links

Cite this