July 27, 2008

Compensation for Electricity Consumers under a U.S. CO2 Emissions Cap.

by Anthony Paul, Dallas Burtraw and Karen L. Palmer

- Policies to cap emissions of carbon dioxide (CO2) in the U.S. economy could pose significant costs on the electricity sector, which contributes roughly 40 percent of total CO2 emissions in the U.S. Using a detailed simulation model of the electricity sector, this paper evaluates alternative ways that emission allowances can be allocated.

Paul, A., D. Burtraw and K.L. Palmer (2008). "Compensation for Electricity Consumers under a U.S. CO2 Emissions Cap." RFF Discussion Paper DP 08-25, Jul 2008.