Recent reports on California’s cap-and-trade program could mislead observers to conclude the system is “collapsing” and undergoing a “meltdown.” But hyperbole isn’t reality, and quite the contrary, the state’s climate policy is succeeding — California is just 3 percent above its 2020 goal of reducing emissions to 1990 levels as required by AB 32. Meeting California’s 2020 greenhouse gas emissions goal is turning out to be easier and cheaper than expected.
Recent reports on California’s cap-and-trade program could mislead observers to conclude the system is “collapsing” and undergoing a “meltdown.” But the most recent data show California is just three percent above its 2020 goal of reducing emissions to 1990 levels as required by AB 32. Meeting California’s 2020 greenhouse gas emissions goal is turning out to be easier and cheaper than expected.
If we’re going to allude to Shakespeare in the debate over a carbon tax, let’s bring out the iambic pentameter. Our July 18 op-ed on the carbon tax (“To tax or not to tax”) continues to draw reader response, including this treatment from Jeffrey Rissman, who notes that “Hamlet was the Prince of Denmark, and Denmark is known for wind turbines….”
Like any corporation, investor-owned electric utilities have a duty to maximize shareholder profits. There’s no problem with this in principle – as long as what maximizes profits also maximizes benefits in the public interest, given their regulatory monopoly status. But today, how utilities make money must change to adapt to new grid needs, customer demands and technological realities.
Transportation systems represent a huge portion of public and private spending — to the tune of $1.2 to $1.4 trillion globally each year. And, in an era rocked by climate change and other disruptions, those systems must be able to weather all kinds of shocks — from fuel shortages to flooding. They must be, in a word, resilient. Here are eight ways China is taking the lead on resilient transportation
New York’s Reforming the Energy Vision (REV) initiative is transforming how utility stakeholders view the power sector’s future, but for the first time polling has revealed widespread support from consumers themselves. Evidence of strongly positive attitudes toward clean energy in general, and NY REV in particular has major implications for utilities and regulators.
This paper examines three cases where cost-of-service regulation (COSR) clearly motivates utilities to pursue sub-optimal outcomes compared to an alternative regulatory strategy. We find COSR often creates utility incentives that misalign with societal value, and improvement to the existing regulatory model holds immense potential to create value for customers and society.
California’s cap-and-trade program should be viewed as part of the state’s comprehensive package of climate policies. Yes, greater legal certainty will help, but keep in mind high carbon prices aren’t a goal of California’s climate policy. The goals are emission reductions, efficiency, consumer protection, and growing businesses set to compete in the 21st century economy.
Texas’ decision for an energy-only market design with an operational reserve demand curve has likely saved Texas consumers billions, as well as improving reliability, providing evidence of an energy transition driven by load reductions, significant increases in renewable generation, and…
High carbon prices aren’t a goal of the system. The goals are emission reductions, efficiency, consumer protection and growing businesses set to compete in the 21st-century economy. California’s climate policy is succeeding, thanks in part to cap and trade.