For the first time last year, a portion of the current vintage allowances offered in one of the California-Quebec cap-and-trade program’s quarterly auctions went unsold. This report provides a quantitative analysis of the supply and demand for carbon allowances in the linked California-Quebec cap-and-trade program to help discern the role that temporary or systemic oversupply may be playing.
Climate Change: Carbon Emissions and Pollution
This report provides insight into which climate and energy policies can most cost-effectively drive down China’s emissions. The report’s recommendations are based on results from the Energy Policy Simulator (EPS), which assesses the combined effects of 35 climate, energy, and environmental policies on a variety of metrics.
This paper synthesizes the reasons for California’s successful climate policy. It considers the relative strengths and weaknesses of different types of policy, concluding that performance standards have led in reducing statewide emissions. Market failures beyond the lack of a price on carbon mean the best policy approach combines the three types of policy: performance standards, economic signals, and research and development (R&D).
The climate problem is enormous: It threatens much of modern civilization, and its principal source, in burning hydrocarbons, is embedded in most of the modern economy. But a handful of insights, grounded in careful math, can clarify the situation, and point out a straightforward path to a reasonable climate future. This paper cuts through the clutter, and points to a reasonable, cost-effective solution to climate change, with clear steps to get there.
This study investigates how California’s electric sector can help achieve deep reductions in greenhouse gas emissions. Modeling results from Phase I of the study reveal that the state can reduce emissions by more than 50 percent below 2012 levels with minimal rate impact, minimal renewables curtailment, and at not cost to reliability. Phase II adds new insight, adding detailed flexibility analyses and examining the effects of drought and different resource mixes on the grid.
This report retrospectively examines the costs, benefits, and other impacts of all state renewable portfolio standards (RPS). The study finds that meeting RPS compliance reduces greenhouse gas emissions, air pollutant emissions (sulfur dioxide, nitrogen oxides, and particulate matter), and water use. These reductions equate to $7.4 billion in benefits. Other economic impacts include jobs growth and price reductions for wholesale electricity and natural gas.
California can accomplish its goal of reducing carbon emissions 40% below 1990 levels by 2030 with proper attention to smart growth. By emphasizing better land use patterns, and supporting better transit and more walkable neighborhoods, carbon reductions of this magnitude are not just technically feasible, but would also save billions of dollars on infrastructure, fuel, and health costs while empowering economic growth and helping counter income inequality.
Energy Innovation’s Policy Solutions, based on transparent data and objective analysis, provide a roadmap to a clean energy future for America. Policy Solutions is a coherent set of the most cost-effective set of 15 policies to achieve the United States’ emissions reductions goals, and save hundreds of billions of dollars between 2016 and 2030.
Energy Innovation identified a cost-effective package of six policies that the U.S. could use to meet the Clean Power Plan at a national average scale. This scenario actually exceeds the emissions goals in later years, as policies designed to meet earlier targets continue to reap benefits in later years, and saves the U.S. more than $40 billion between 2016 and 2030.
It pays to adopt smart energy policy sooner rather than later. If policymakers wait just four years (until 2020) to take action and want to achieve the same emissions reductions by 2030, they risk nearly $400 billion in additional costs. Policy implementation should start early to take advantage of natural capital stock turnover and the increased productivity of an efficient system.