Combining a Renewable Portfolio Standard with a Cap-and-Trade Policy: A General Equilibrium Analysis
Name
MITJPSPGC_Rpt187.pdf
Size
738.29 KB
Format
Adobe PDF
Checksum (MD5)
9051bad584109975c01e9eb7a9d93a49
Author(s)
Morris, Jennifer
Reilly, John M.
Paltsev, Sergey
Date Issued
July 2010
Publisher
MIT Joint Program on the Science and Policy of Global Change
Citation
Report no. 187
Series/Report no.
;Report no. 187
Abstract
Many efforts to address greenhouse gas emissions combine a cap-and-trade system with other measures such as a renewable portfolio standard. In this paper we use a computable general equilibrium (CGE) model, the MIT Emissions Prediction and Policy Analysis (EPPA) model, to investigate the effects of combining these policies. We find that adding an RPS requiring 20 percent renewables by 2020 to a cap that reduces emissions by 80% below 1990 levels by 2050 increases the net present value welfare cost of meeting such a cap by 25 percent over the life of the policy, while reducing the CO2-equivalent price by about 20 percent each year.
Description
Abstract and PDF report are also available on the MIT Joint Program on the Science and Policy of Global Change website (http://globalchange.mit.edu/)
