Renewable portfolio standards and other green energy rules put a price on environmental benefits. Calculating this price can help clarify the social value of GHG reductions.
Not So Fast
Proving market performance requires detailed analysis.
serious attempt at reducing its carbon-dioxide emissions soon and quickly, a thorough examination would be especially useful at this time, so that customers don’t pay more than necessary to accomplish goals set by policymakers.
This analysis is late and overdue, but it isn’t too late.
1. The national price and sales figures used here are derived from U.S. Department of Energy’s Energy Information Administration data.
2. PJM price figures are based on data from PJM’s market monitor, Monitoring Analytics.
3. This is discussed in more detail in “The Impact of Fuel Costs on Electric Power Prices,” June 2007, prepared for the American Public Power Association (APPA) .
4. Since 2008, PJM’s market monitoring has been conducted by Monitoring Analytics. Their analysis is available here.
5. A notable exception to this is the analysis of the California power markets, particularly after the Western power crisis that produced some of the best analysis of any market to date.