This paper estimates the price-induced impacts of decarbonization policy on CO₂ emissions in California and the Pacific Northwest. We document that retail demands for electricity and natural gas by customer class are highly price-inelastic. Based on the heat rates of natural-gas-fired generation, we find that a 10% electricity rate increase due to electricity decarbonization may not have the consumption effects of further reducing the region's CO₂ emissions. Copyright © 2017 Elsevier Inc. All rights reserved.
|Journal||The Electricity Journal|
|Early online date||Nov 2017|
|Publication status||Published - Dec 2017|
CitationWoo, C. K., Liu, Y., Luo, X., Shiu, A., & Zarnikau, J. (2017). Consumption effects of electricity decarbonization: Evidence from California and the Pacific Northwest. The Electricity Journal, 30(10), 44-49. doi: 10.1016/j.tej.2017.11.007
- Consumption effects
- Electricity decarbonization
- Pacific Northwest