Downstream regulation of CO2 emissions in California's electricity sector

James Bushnell, Yihsu Chen and Matthew Zaragoza-Watkins

Energy Policy, 2014, vol. 64, issue C, 313-323

Abstract: This paper examines the implications of alternative forms of cap-and-trade regulations on the California electricity market. Specific focus is given to the implementation of a downstream form of regulation known as the first-deliverer policy. Under this policy, importers (i.e., first-deliverers) of electricity into California are responsible for the emissions associated with the power plants from which the power originated, even if those plants are physically located outside of California. We find that, absent strict non-economic barriers to changing import patterns, such policies are extremely vulnerable to reshuffling of import resources. The net impact implies that the first-deliverer policies will be only marginally more effective than a conventional source-based regulation.

Keywords: Cap-and-trade; Electricity markets; Climate policy (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:64:y:2014:i:c:p:313-323

DOI: 10.1016/j.enpol.2013.08.065

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