Abito, Jose Miguel
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Publication The Economic Costs and Benefits of Implementing the Clean Power Plan(2016-11-01) Abito, Jose Miguel; Knittel, Christopher R; Metaxoglou, Konstantinos; Trindade, AndreThis 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.