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Impact of competitive electricity market on renewable generation technology choice and policies in the United States

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  • Sarkar, Ashok

Abstract

Market objectives based on private value judgments will conflict with social policy objectives toward environmental quality in an emerging restructured electricity industry. This might affect the choice of renewables in the future generation mix. The US electricity industry's long-range capacity planning and operations is simulated for alternative market paradigms to study this impact. The analysis indicates that the share of renewable energy generation sources would decrease and emissions would increase considerably in a more competitive industry, with greater impact occurring in a monopoly market. Alternative environmental policy options can overcome market failures and help achieve appropriate levels of renewable generation. An evaluation of these policies indicate their varying cost-effectiveness, with higher levels of intervention necessary if market power exists.

Suggested Citation

  • Sarkar, Ashok, 1999. "Impact of competitive electricity market on renewable generation technology choice and policies in the United States," Renewable Energy, Elsevier, vol. 16(1), pages 1237-1240.
    • Handle: RePEc:eee:renene:v:16:y:1999:i:1:p:1237-1240
    DOI: 10.1016/S0960-1481(98)00496-0
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    References listed on IDEAS

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    1. Hobbs, Benjamin F. & Centolella, Paul, 1995. "Environmental policies and their effects on utility planning and operations," Energy, Elsevier, vol. 20(4), pages 255-271.
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