Tools and policies to promote decarbonization of the electricity sector

Kathryne Cleary, Carolyn Fischer, Karen Palmer

Research output: Chapter in Book / Report / Conference proceedingChapterAcademicpeer-review

Abstract

This chaptersummarisesboth marketand non-market-basedpolicies andtoolsavailable forencouragingdecarbonisationof the electricity sector.Market-based policiesinclude carbon pricing, through a carbon tax on electricity generation or a cap-and-trade program on emissions, and second-best tradable standards, which include emissions intensity standards, clean energy standards, and renewable portfolio standards.Popular non-market, technology-specific policymechanismsdiscussed include targeting specific technologies through subsidies, or discouraging the use of dirtier resources, such as coal, through a mandated phase-out. Policy options for encouraging energy efficiency in the power sector to reduce emissions are also explored.Policies that price carbon are more economically efficient than other, particularly non-market policies but can be politically challenging.Since multiple policies are often used simultaneously, interactions between these various market and non-marketpoliciesare discussed. Examples are drawn from experiences in several countries, including parts of Europe, the US, Asia, and South America.

Original languageEnglish
Title of host publicationHandbook on Electricity Markets
EditorsJean-Michel Glachant, Paul J. Joskow, Michael G. Pollitt
PublisherEdward Elgar Publishing Ltd.
Chapter14
Pages383-407
Number of pages25
ISBN (Electronic)9781788979955
ISBN (Print)9781788979948, 9781035312412
DOIs
Publication statusPublished - 2021

Bibliographical note

Publisher Copyright:
© Jean-Michel Glachant, Paul L. Joskow and Michael G. Pollitt 2021.

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