The Economic and Energy Impacts of Power Plant Emissions Standards
The CSIS Energy and National Security Program and the Rhodium Group (RHG) release the preliminary results from their study on the economic and energy system impacts of the Environmental Protection Agency's proposed 111(d) rule - the Clean Power Plan - regulating carbon dioxide from existing power plants. The results from the study will be compared with the economic impacts in the EPAs regulatory impact analysis, highlighting areas where the modeling results diverge.
On June 2, 2014, the EPA proposed guidelines for states to develop and implement carbon dioxide emissions standards for existing US power plants. These rules will likely bring about the most significant change in the US electricity sector in decades. But regulating GHG emissions from existing power plants will also have important supply-side implications, whether fuel switching from coal to natural gas or expanded production of renewable energy and energy efficiency equipment technology.
CSIS and RHG have partnered to do an initial assessment of the economic impact of future emissions standards that accounts for these broader energy market dynamics and maps impacts by region of the country to help inform key regional and industry stakeholders. The study focuses on the changes to the electric power and energy production that are likely to under the EPA's proposal, as well as price, demand expenditures and other impacts. The analysis provides a balanced and measured set of estimates of national and regional results to inform ongoing policy deliberations both in Washington and in the states.
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