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 language | English |
|---|---|
| Pages (from-to) | 18-22 |
| Journal | The Electricity Journal |
| Volume | 29 |
| Issue number | 7 |
| Early online date | Aug 2016 |
| DOIs | |
| Publication status | Published - Sept 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
