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2014 47th Hawaii International Conference on System Sciences (2008)
Waikoloa, Big Island, Hawaii
Jan. 7, 2008 to Jan. 10, 2008
ISSN: 1530-1605
ISBN: 0-7695-3075-3
pp: 179
acceptable levels will require a dramatic de-carbonization of the electric generation sector in the U.S. One increasingly discussed way to meet this policy goal is to put an explicit price on carbon emissions, either through a tax or a trading scheme. Increasing demand response has also been discussed as a way to reduce carbon emissions in the U.S. electricity industry. We examine the short-run effectiveness of a policy combining demand response with a carbon tax. Using plant-level operational data, we construct short-run cost curves for three U.S. regional electric systems, and examine the impacts on prices and carbon emissions. In the short run, a carbon tax in the range of $30 - $40 and a price elasticity of demand in the range of -0.1 to -0.2 could reduce carbon emissions in coal-intensive regions by 10% to 25%. With this same set of carbon prices, achieving a 50% reduction in emissions would require a price elasticity of demand in the range of -0.25 to -0.4. Percentage reductions of this magnitude in less carbon-intensive systems are unlikely, even with highly elastic demand and high carbon prices. Index Terms--Climate Change, Carbon Tax, Demand Response
Adam Newcomer, Lester B. Lave, Jay Apt, Seth Blumsack, M. Granger Morgan, "Electricity Load and Carbon Dioxide Emissions: Effects of a Carbon Price in the Short Term", 2014 47th Hawaii International Conference on System Sciences, vol. 00, no. , pp. 179, 2008, doi:10.1109/HICSS.2008.139
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