Power Plant Emission Reductions Using a Generation Performance Standard

摘要

There are many policy instruments available for reducing power plant emissions, and the choice of a policy will affect compliance decisions, costs, and prices faced by consumers. In a previous analysis, the Energy Information Administration analyzed the impacts of power sector caps on nitrogen oxides, sulfur dioxide, and carbon dioxide emissions, assuming a policy instrument patterned after the sulfur dioxide allowance program created in the Clean Air Act Amendments of 1990. This report compares the results of that work with the results of an analysis that assumes the use of a dynamic generation performance standard (GPS) as an instrument for reducing carbon dioxide emissions. In general, the results of the two analyses are similar: to reduce carbon dioxide emissions the power sector is expected to turn away from coal-fired generation to natural gas and, to a lesser extent, renewables. However, when a GPS program to reduce carbon dioxide emissions is assumed, the electricity price impacts of the program are projected to be lower, while natural gas prices, carbon dioxide allowance prices, and total resource costs for electricity generators are projected to be higher. More generation from renewable fuels is also expected under the GPS program.