Cost-Effectiveness of Renewable Electricity Policies

Karen Palmer and Dallas Burtraw

No 10845, Discussion Papers from Resources for the Future

Abstract: We analyze policies to promote renewable sources of electricity. A renewable portfolio standard raises electricity prices and primarily reduces gas-fired generation. A "knee" of the cost curve exists between 15% and 20% goals for 2020 in our central case, and higher natural gas prices lower the cost of greater reliance on renewables. A renewable energy production tax credit lowers electricity price at the expense of taxpayers and thus limits its effectiveness in reducing carbon emissions; it also is less cost-effective at increasing renewables than a portfolio standard. Neither policy is as cost-effective as a cap-and-trade policy for achieving carbon emissions reductions.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Pages: 35
Date: 2005
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Citations: View citations in EconPapers (156)

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Related works:
Journal Article: Cost-effectiveness of renewable electricity policies (2005)
Working Paper: Cost-Effectiveness of Renewable Electricity Policies (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:rffdps:10845

DOI: 10.22004/ag.econ.10845

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