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Recent climate regulations include increased utilization of natural gas-fired combined cycle (NGCC) generators as a means for offsetting coal generation to reduce carbon emissions. There have been substantial increases in utilization for some generators, but most remain below baseload levels. This paper examines the factors that have driven NGCC utilization from 2003-2014. I run difference-in-difference models to evaluate the relationships between environmental policies and natural gas prices on NGCC utilization. Both low natural gas prices and the Clean Air Interstate Rule (CAIR) drive increases in utilization. However, the size of the impact by CAIR depends on the age of the plant. I use the estimates from this model for a counterfactual analysis which reveals CAIR had nearly twice the impact of low natural gas prices on increased utilization in nationwide averages. [ABSTRACT FROM AUTHOR]

Quantifying the driving forces behind changes in aggregate CO2 emissions provides valuable information for supporting policy making in addressing climate change. We study this issue using the production-theoretical decomposition analysis (PDA) technique. Within a production theory framework, PDA examines CO2 emission changes from the perspective of productive efficiency. Although regional and sectoral heterogeneities in energy consumption and emission patterns prevail, they have not been taken into account in the PDA literature. By incorporating relevant decomposition methods, this study proposes an extended PDA approach to resolving the heterogeneity issue. The approach is applied to examine China's aggregate CO2 emission changes in its 11th five-year plan period (2005-2010). By accounting for the heterogeneities, detailed results at the regional and sectoral levels are generated and further discussions presented. [ABSTRACT FROM AUTHOR]

We examine the environmental and policy impacts of switching from oil-fired to natural gas-fired generation in New York City (NYC). We create an hourly panel of the fuel use of NYC's generators and use a semi-parametric approach to identify the fuel-price spread that induces the switch from oil to gas. We find that NYC's pollution emissions decrease significantly after generators switch to natural gas. Around two-thirds of these emission reductions come from reduced emission intensity within plants, while the remaining third comes from less intense dispatch of oil fired generators. To illustrate the policy impact, we simulate the introduction of a real time pricing (RTP) program in NYC. The results suggest that the environmental benefits of the RTP decreased by nearly 30% due largely to fuel switching. While we focus on RTP, these results can be used to evaluate any energy policy that has a heterogeneous impact across time or the demand profile. [ABSTRACT FROM AUTHOR]

The intention of this paper is to (i) introduce a multi-regional dynamic emissions trading model and (ii) examine the potential impact of an emissions trading scheme (ETS) on the long-term evolution of energy technologies from national and regional perspectives in China. The establishment of this model is a salutary attempt to Sinicize the global integrated assessment model that combines economy, energy, and environment systems. The simulation results indicate that: (1) for majority of regions, ETS is more effective in cutting CO2 emissions than a harmonized carbon tax (HCT), but this might not be true for the entire country, which means that these two options have little difference in overall carbon reduction; (2) carbon tax policy is a more cost-effective option in curbing CO2 with respect to ETS in the long run; (3) neither ETS nor pure carbon tax provide enough incentives for the breakthrough of carbon-free energy technologies, which illustrates that matching with some other support policies, such as subsidies and R&D investment, is essential to extend the niche market; and (4) In the context of ETS, the diffusion of non-fossil technologies in regions that act as sellers performs much better than this diffusion in the buyer regions. [ABSTRACT FROM AUTHOR]

Buildings are the dominant driver of daily and seasonal electric load cycles, and account for 40 percent of U.S. final energy use. They account for roughly 10 percent of direct U.S. CO2 emissions and roughly 40 percent once indirect emissions from electricity generation are included. This paper explores possible evolution of this sector over the coming century, its potential role climate action and response to climate policies, and the potential benefits advances in building technologies for addressing climate change. The paper presents a set of scenarios based on a detailed, service-based model of the buildings sector that is embedded within a long-term, global, integrated assessment model, MiniCAM. Eight scenarios are created in total, combining sets of assumptions regarding U.S. building service demand growth, two assumptions regarding the improvements in building energy technologies, two assumptions regarding long-term U.S. climate action --- a no-climate-action assumption and an assumption of market-based policies to reduce U.S. emissions consistent with a 450 ppmv global target. Through these eight scenarios, the paper comments on the implications of continued growth in building service demands, the ability of efficiency measures to reduce emissions, the strong link between decarbonization of electricity generation and building sector emissions. [ABSTRACT FROM AUTHOR]

In this paper we examine the interaction between technology policy and its impact on the full basket of worldwide greenhouse emissions over the 21st century. The heart of the analysis is the Argonne National Laboratory's AMIGA Modeling System, a technology rich, general equilibrium model that (depending on data availability) characterizes as many as 200 sectors of the regional economies. We suggest in this paper that technologies and technology policies exist which could reduce carbon emissions enough to achieve stabilization targets at relatively modest costs given the size of the world economy. This can be accomplished largely through harnessing market forces and creating incentives with the use of efficient prices on greenhouse gas emissions, combined with complementary programs and policies to reduce market failures and to promote new technology improvements and investments. [ABSTRACT FROM AUTHOR]

Reimplementation of an EU-wide emissions trading system by means of National Allocation Plans is at the core of the European environmental policy agenda. EU Member States must allocate their national emission budgets under the EU Burden Sharing Agreement between energy-intensive sectors that are eligible for European emissions trading and the remaining segments of their economies that will be subject to complementary domestic emission regulation. We show that such hybrid emission regulation may lead to substantial excess costs compared to a comprehensive emissions trading system covering all segments of the economy. Furthermore, the hybrid system associated with the current design of National Allocation Plans is likely to discriminate against sectors that are not part of the emissions trading scheme. The interested reader can make use of a web-based interactive simulation model in order to specify and evaluate alternative settings of the EU emissions trading system. [ABSTRACT FROM AUTHOR]

In this paper we explore whether efficiency gains obtained by developing countries participation in emission trading could offset the economic risks that would be incurred by taking on binding commitments when future emissions are uncertain. Such commitments would allow developing countries to participate in emissions trading, which has significantly lower transaction costs than the present Clean Development Mechanism (CDM). However, because future emissions cannot be known, commitments can become more costly for the developing countries than expected. Using a dynamic computable general equilibrium model, we analyse whether the efficiency gains obtained by participating in emissions trading can offset this risk. We find that the efficiency gains that can be obtained by developing countries might not be very large compared to the risks they incur. Developing countries might therefore have good reasons not to embrace binding commitments in order to participate in "cap and trade" emissions trading. [ABSTRACT FROM AUTHOR]