Modeling the Electricity Sector: A Summary of Recent Analyses of New EPA Regulations

Resources for the Future Discussion Paper No. 12-52

21 Pages Posted: 9 Jan 2013

See all articles by Blair Beasley

Blair Beasley

Resources for the Future

Daniel F. Morris

Resources for the Future

Date Written: November 16, 2012

Abstract

Several different economic models have been applied to try to understand how new regulations by the U.S. Environmental Protection Agency (EPA) could impact coal-fired generation in the United States as well as the electricity system as a whole. This paper provides an overview of many of the key studies and the models used to analyze the potential impacts of EPA’s rules. The regulations surveyed include the Cross-State Air Pollution Rule (CSAPR), the Mercury and Air Toxics Standards (MATS), the proposed Clean Water Act (CWA) Section 316(b) rule, and the proposed Coal Combustion Residuals (CCR) rule. The models generally agree that these regulations will result in coal plant retirements, though there is far less agreement on how much generation may retire. Assumptions about the price of natural gas and the expected stringency of regulations play a key role in determining modeling results. The models provide useful guidance for policymakers when considering the potential impact of EPA regulation.

Keywords: Clean Air Act, electricity, EPA regulation, modeling, power plant retirement

JEL Classification: C69, L51, Q47, Q48, Q52

Suggested Citation

Beasley, Blair and Morris, Daniel F., Modeling the Electricity Sector: A Summary of Recent Analyses of New EPA Regulations (November 16, 2012). Resources for the Future Discussion Paper No. 12-52, Available at SSRN: https://ssrn.com/abstract=2197969 or http://dx.doi.org/10.2139/ssrn.2197969

Blair Beasley

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

Daniel F. Morris (Contact Author)

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States
202.328.5003 (Phone)

HOME PAGE: http://www.rff.org/Researchers/Pages/ResearchersBio.aspx?ResearcherID=1750

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