Institute for Policy Integrity

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Publications

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  • Capacity Markets and Externalities
    Report

    Capacity Markets and Externalities

    Avoiding Unnecessary and Problematic Reforms

    By Sylwia Bialek and Burcin Unel
    April 30, 2018

    Many states are taking action on climate change by paying zero- and low-emitting electricity generators for avoiding the emissions that fossil-fuel-fired resources would otherwise emit. These “externality payments” help level the playing field between emitting and non-emitting generators. Critics of these policies argue that these payments might negatively affect the efficiency of wholesale electricity markets by reducing capacity prices, which heavily affect how generators enter and exit the market. Our report shows why the premises underlying recent reforms, which seek to shield capacity markets from the potential price impact of pollution externality payments, are flawed.

  • Managing the Future of Energy Storage
    Report

    Managing the Future of Energy Storage

    Implications for Greenhouse Gas Emissions

    By Madison Condon, Richard Revesz, and Burcin Unel
    April 24, 2018

    Many policymakers assume that increasing deployment of energy storage will automatically reduce greenhouse gas emissions, in part by helping to integrate renewable energy resources with intermittent and variable generation. This report explores situations in which energy storage systems can in fact lead to increased emissions, and offers reforms to correct for poor incentives while ensuring that energy storage can provide the maximum benefit possible to the grid.

  • Valuing Pollution Reductions
    Report

    Valuing Pollution Reductions

    How to Monetize Greenhouse Gas and Local Air Pollutant Reductions from Distributed Energy Resources

    By Jeffrey Shrader, Burcin Unel, and Avi Zevin
    March 23, 2018

    Distributed energy resources (DERs)—grid-connected, small-scale electric generators such as rooftop solar installations, micro-turbines, combined heat and power systems, customer backup generators, and distributed energy storage systems—are a growing part of the U.S. electric system. They can help avoid the high levels of greenhouse gases and local air pollution produced by traditional energy sources. As their use grows, state electric utility regulators are seeking to compensate DERs accurately for the benefits they offer, including reductions in pollution that contributes to climate change and harms human health. This report shows how regulators can calculate the types and amount of pollution avoided, and then monetize these benefits for use in policy.

  • The Social Cost of Greenhouse Gases and State Policy
    Report

    The Social Cost of Greenhouse Gases and State Policy

    A Frequently Asked Questions Guide

    By Iliana Paul, Peter Howard, and Jason A. Schwartz
    October 5, 2017

    States can benefit from using the social cost of greenhouse gases to aid in making rational policy decisions in a transparent manner. Many states are already using these metrics in their decisionmaking. This report provides information on several issues related to the social cost of greenhouse gases, including discount rates, time horizons, and the global nature of the estimate.

  • The Falling Cost of Clean Power Plan Compliance
    Report

    The Falling Cost of Clean Power Plan Compliance

    By Denise A. Grab and Jack Lienke
    October 2, 2017

    In 2015, the U.S. Environmental Protection Agency (EPA) released the Clean Power Plan, a Clean Air Act rule designed to address the threat of climate change by cutting carbon dioxide emissions from fossil fuel-fired power plants. As part of that rulemaking, the agency prepared an estimate of compliance costs, which it found would be far outweighed by the rule’s climate and health benefits. Since that time, changes in the electric sector have made it even cheaper to meet the rule’s emission targets than EPA anticipated. This report summarizes the findings of EPA’s 2015 Regulatory Impact Analysis; discusses subsequent market and policy developments that have lowered the cost of complying with the Clean Power Plan; and surveys more recent analyses by independent groups, which have estimated substantially lower compliance costs than EPA did.