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ID126838
Title ProperDownstream regulation of CO2 emissions in California's electricity sector
LanguageENG
AuthorBushnell, James ;  Chen, Yihsu ;  Zaragoza-Watkins, Matthew
Publication2014.
Summary / Abstract (Note)This paper examines the implications of alternative forms of cap-and-trade regulations on the California electricity market. Specific focus is given to the implementation of a downstream form of regulation known as the first-deliverer policy. Under this policy, importers (i.e., first-deliverers) of electricity into California are responsible for the emissions associated with the power plants from which the power originated, even if those plants are physically located outside of California. We find that, absent strict non-economic barriers to changing import patterns, such policies are extremely vulnerable to reshuffling of import resources. The net impact implies that the first-deliverer policies will be only marginally more effective than a conventional source-based regulation.
`In' analytical NoteEnergy Policy Vol.64; Jan 2014: p.313-323
Journal SourceEnergy Policy Vol.64; Jan 2014: p.313-323
Key WordsCap - and - Trade ;  Electricity Markets ;  Climate Policy