Electricity production under carbon constraints: implications for the Tenth District

Coal is the dominant fuel used to produce electricity in the United States, accounting for almost half of production. In the Federal Reserve?s Tenth District, six of seven states generate two-thirds or more of their electricity from coal. ; Although coal is cheap and abundant domestically, the burning of coal releases greenhouse gases and particulates. Snead analyzes the regulatory risk coal-intensive states face from possible increased restrictions on greenhouse-gas emissions. ; The findings suggest that greenhouse gas restrictions would lead to a significant and expensive change in the mix of fuels used to generate electricity in most District states, as well as increased electricity costs to District consumers.