General Equilibrium Impacts of a Federal Clean Energy Standard

This study uses general equilibrium models to determine the conditions that would make a clean energy standard (CES), which would establish a minimum level for the share of electricity purchased by electric utilities that comes from clean energy sources, more cost-effective compared to a cap-and-trade program. It concludes that the cost disadvantage of a CES is much less than originally estimated, and can even be more effective than an emissions pricing scheme in some circumstances.