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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.
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energy policy, EPA, Clean Power Plan, cost efficiency, emissions, carbon, natural gas, electricity, CO2, best available technology, BAT
Abito, Jose Miguel; Knittel, Christopher R.; Metaxoglou, Konstantinos; and Trindade, Andre, "The Economic Costs and Benefits of Implementing the Clean Power Plan" (2016). Penn Wharton Public Policy Initiative. 2.