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Climate Change Polic
Green Final
| Term | Definition |
|---|---|
| Current Emissions Dynamic | US still second most, but we are coming down, Europe also coming down, China and India spiking |
| Historical Emissions | US historical more than Europe, US + Europe maybe more than rest of world combined? |
| Nuance missed with average temperature increase metric | Particular areas typically have FAR greater variation but pull average up on net |
| Rejected Energy | Largely comes from heat-related inefficiencies in engines that burn fossil fuels, it is the share of energy that does not do work |
| US Energy-related emissions use categories | Transportation ~40%, Generation 30%, Industrial ~20% |
| US Energy-related emissions sources | Petroleum 1/2, NG 1/3, Coal 1/5 |
| US Generation Emissions sources | 60% Coal, 40% NG |
| Why have we had public policy mechanisms for green energy | traditionally expensive, huge upfront capital |
| 2 parts of public policy mechanisms | higher prices/lower costs for renewable energy vs. conventional, and way to stabilize generation to make financing reasoning |
| possible approaches to supporting green energy | full cost of fossil fuels, quantity-based mechanisms, price-based mechanisms, cost/investment subsidies |
| Fix pricing of fossil fuels | account for the entire social cost of fossil fuels through taxes or tradeable permit system |
| quantity-based supports for renewable energy | require utilities to by specific quantities/ratios of green energy through renewable portfolio standard systems |
| price-based support mechanisms | Feed-in tariffs or production subsidies, pay higher price for green power |
| Investment/cost support mechanisms | Investment tax credits or subsidy based on spending |
| Carbon tax | Pigouvian tax (corrects negative externality) by setting the tax equal to the difference between the marginal private and public cost, easiest to put at point of fuel sale but hard to calculate level to get result, can reduce other taxes |
| tradeable permit system | widely used such as European Emissions Trading System or US Acid Rain, set amount you are ok with being emitted, then auction off initial amounts and let market do the rest |
| Issues with European ETS prices and allocation | too many permits that price went to zero, extremely volatile, has recently stabilized |
| renewable vs conventional energy cost structure | high fixed costs, low variable costs |
| Renewable Portfolio Standards | different in every state, all with different dates, charged at utility, extremely illiquid, REC's are sellable, good because supports long term contexts but super inefficient (why build solar in NJ?) |
| REC | Renewable Energy Certificate, tradeable and priced based on cost of new renewable generation, often bundled |
| Feed-in Tariff Programs | fixed price for renewable energy for unlimited quantity, popular outside US but how to control quantity |
| Renewable Energy Auction | bids price downwards either across all new renewable or by type |
| PTC | Production Tax Credit, for wind generation per KWh for 10 years |
| ITC | Investment Tax Credit, for solar generation based on investment cost |
| IRA tax credits | now able to sell, extended ITC and PTC for projects beginning construction by Jan 2025, 10 year rooftop solar, new credits for: US solar cells, storage, manufacturing, possible to stack credits |
Created by:
zkogut7
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