Common Resources

Mercury and Air Toxics Standards Analysis Deconstructed: Changing Assumptions, Changing Results

EPA regulations on mercury and other air pollutants currently under review are the subject of much debate for their potential costs and impacts on the electricity industry. In a new discussion paper, RFF colleagues and I examine the assumptions behind several studies that have analyzed the potential effects of the Mercury and Air Toxics Standards, [...]

The IMF Takes on Energy Subsidies

It has long and widely been accepted that subsidies that promote the production and consumption of energy – thereby disguising its real cost to society – do little to benefit mankind. On the output side, second-guessing the market distorts firms’ decisions about optimal investment strategies. Among users, access to below-cost energy encourages waste, with environmental [...]

Do Renewables Policies Promote Valuable Investments?

Last month, a big battle over the production tax credit (PTC) for wind ended with Congress granting a one-year extension. This month, the focus has shifted to another renewable energy policy: state renewable portfolio standards (RPSs). Just this week, the Heartland Institute recommended repealing Kansas’s RPS—the latest addition in a growing attack on state RPSs. [...]

Why the Wind Tax Credit is a Bad Way to Cut Carbon

Eligibility for the wind energy production tax credit (PTC), established by Congress in 1992, is set to expire at the end of this month, causing calls for action and inaction. Is this policy change a big deal for carbon emissions? Let’s take a closer look. Currently,  the PTC provides renewable power projects with a corporate [...]

Less Coal, More Gas, Less Carbon, Cheaper Power

Brad Plumer at the Washington Post wrote yesterday that coal power generation in the U.S. is in sharp decline—but market forces, not environmental regulation, are driving the recent trend according to analysis in a new Brattle Group report. The primary reason is natural gas prices. RFF research generally bears this out—and indicates that it should [...]

The CSAPR Ruling and the Future of Clean Air Act Regulation

Three quick thoughts after a closer read of last week’s DC Circuit ruling striking down EPA’s Cross-State Air Pollution Rule (CSAPR). Fair warning: I get into wonky details of the Clean Air Act. If you’re looking for a broader take on the case, look here. This holding seems correct, but appeal is likely The majority [...]

Against Zombie Regulation

The DC Circuit today struck down EPA’s Cross State Air Pollution Rule (CSAPR), the EPA’s latest attempt to regulate sulfur dioxide and nitrogen oxide emissions from power plants, using at least somewhat flexible, market-based tools. I’m currently working through the opinion and will have more to say later. But one thing is clear already – [...]

Falling Emissions and Falling Prices: Expectations for the Domestic Natural Gas Boom

Current expectations for an increased supply of domestic natural gas have sparked debate about how the changing electricity sector will affect electricity consumers and the environment. The latest round of commentary by Michael Levi focuses on gas’s ability to displace coal generation, and as a result, decrease emissions of greenhouse gases. But Levi suggests that [...]

Keeping the Lights on for 670 Million

On July 30th, the northern grid of the Indian electricity network collapsed, causing electricity outages affecting 8 different states. As power was being restored on the 31st, the grid collapsed again. This time along with the northern grid, the eastern and north-eastern grids also collapsed affecting an area populated by an estimated 670 million people. [...]

Why We Get the Electricity Reliability We’re Willing to Pay For

Everybody’s talking about power outages—is there anything we should do about them? That’s been the local hot topic since the June 29 derecho blew through the DC area, causing many to lose power for as much as a week, throw out food, seek out hotels, and start shopping for generators. We can be sure of [...]