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.
Major Energy Economies
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).
This white paper is the first in our Incentive Mechanism Design series, which offers perspective on how regulators might decide to design performance incentive mechanisms for success. The paper examines California’s Risk-Reward Incentive Mechanism (RRIM) as a case study to show that, while counterfactuals may be appropriate as an adjustment mechanism, they can also lead to unfair outcomes and unnecessary regulatory conflict.
This issue brief examines the potential benefits of expanding CAISO’s footprint to include other Western balancing areas through the lens of improved economics, renewable power integration, and conventional power plant retirements. The report is consistent with recommendations for policymakers articulated in Planning for and Investing in Wires. The report, summarized here also makes the case against a capacity market for a Western RTO recognizing, as Texas did, that it can be a lifeline to inefficient, old, uneconomical plants.
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.
Negotiations by the world leaders at the COP21 summit should be guided by California’s experience. California’s climate efforts stem largely from its goal to reduce greenhouse gas emissions to 1990 levels by 2020, and then decrease emissions 80 percent below 1990 levels by 2050. This paper describes how performance standards and carbon pricing mechanisms have helped the state reduce emissions and increase renewable energy while creating economic growth, putting the state well on its way to achieving its emissions goals.
This report offers a roadmap for moving beyond 33 percent renewables, as required by SB 350, passed this year. While there are no clear signals that would suggest significant management issues with higher penetrations of renewables, the CPUC does recognize the growing need for ramping, handling over-generation, and additional ancillary services.
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.
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.