Impact of Relative Fuel Prices on CO2 Emission Policies

Nick Macaluso and Robin White

The Energy Journal, 2011, vol. 32, issue 1_suppl, 89-110

Abstract: The multi-sector end-use energy model E3MC was used to analyze the energy and greenhouse gas emissions impact of adding a carbon tax to efficiency improvement standards for the residential sector in Canada and the USA. Compared to standards alone, the addition of the tax led to further residential emission reductions in Canada, but attenuated the residential emission reductions in the USA. Examination of the relative residential electricity:natural gas prices demonstrated that the different country impacts were due to an increase in relative prices in the USA, but a decrease in relative prices in Canada that led to opposite shifts in preference for electricity over natural gas in the residential sector. Markedly different impacts of the carbon tax on electricity prices was due to the predominance of hydroelectric power in Canada and coal-fired electric generation in the USA. doi: 10.5547/ISSN0195-6574-EJ-Vol32-SI1-6

Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:32:y:2011:i:1_suppl:p:89-110

DOI: 10.5547/ISSN0195-6574-EJ-Vol32-SI1-6

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