The Clean Power Plan aims to reduce carbon emissions from power plants. Assuming the rule survives judicial review, the Clean Power Plan is likely to intensify the electricity industry's already underway shift from coal-fired generation to natural gas and renewables generation.
Join the authors of a new Nicholas Institute for Environmental Policy Solutions working paper for a webinar, 10 a.m. ET August 16. Lead author Martin Ross will discuss how the Nicholas Institute’s Dynamic Integrated Economy/Energy/Emissions Model was used to evaluate electricity industry trends and Clean Power Plan impacts on the U.S. generation mix, emissions, and industry costs. The analysis suggests that industry trends are likely to make Clean Power Plan compliance relatively inexpensive; cost increases are likely to be on the order of 0.1% to 1.0%. However, policy costs can vary substantially across states and may lead some of them to adopt a patchwork of policies that, although in their own best interests, could impose additional costs on neighboring states.