What happens in California does not always stay in California: The effect of California’s cap-and-trade program on wholesale electricity prices in the Western Interconnection

Arne OLSON, Chi Keung WOO, Nick SCHLAG, Alison ONG

Research output: Contribution to journalArticles

4 Citations (Scopus)

Abstract

An examination of the effect of California’s cap-and-trade program on wholesale electricity prices in the Western Interconnection finds that the CO₂ price is fully captured by California electricity prices, but also by prices at the Mid-Columbia hub in the Pacific Northwest. This occurs because, under California rules, Northwest generators can export carbon-free hydroelectricity to California at premium prices. Copyright © 2016 Elsevier Ltd.
Original languageEnglish
Pages (from-to)18-22
JournalThe Electricity Journal
Volume29
Issue number7
Early online dateAug 2016
DOIs
Publication statusPublished - Sep 2016

Citation

Olson, A., Woo, C. K., Schlag, N., & Ong, A. (2016). What happens in California does not always stay in California: The effect of California’s cap-and-trade program on wholesale electricity prices in the Western Interconnection. The Electricity Journal, 29(7), 18-22.

Keywords

  • Cap-and-trade program
  • CO₂ price
  • Wholesale electricity prices
  • California
  • Western Interconnection

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