Cost-Effectiveness of Renewable Electricity Policies

Dallas Burtraw and Karen Palmer

RFF Working Paper Series 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 costeffective at increasing renewables than a portfolio standard. Neither policy is as cost-effective as a capand-trade policy for achieving carbon emissions reductions.

Keywords: renewable energy; electricity; renewable portfolio standard; carbon dioxide (search for similar items in EconPapers)
JEL-codes: Q42 Q48 Q54 (search for similar items in EconPapers)
Date: 2005-01-11
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (160)

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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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