Penn Wharton Public Policy Initiative

Publication Date

11-2016

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Volume

4

Number

8

Document Type

Brief

Summary

This brief looks at the costs of implementing the EPA’s Clean Power Plan. Specifically, it examines whether implementing the CPP on a state-by-state basis—that is, with each state meeting its own individual target for emissions reduction by 2030, rather than establishing regional targets—is economically efficient. The economic analysis uses data from electricity-generating firms participating in the Pennsylvania-New Jersey-Maryland (PJM) Interconnection to examine the relative economic efficiency of regional versus state-by-state implementation of the CPP. The research indicates that state-by-state implementation would yield the lowest electricity prices in 2030.

License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License

Keywords

energy policy, EPA, Clean Power Plan, cost efficiency, emissions, carbon, natural gas, electricity, CO2, best available technology, BAT