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Policy Effectiveness in Energy Conservation and Emission Reduction

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  • Mei Yuan
  • Sugandha Tuladhar
  • Paul Bernstein
  • Lee Lanen

Abstract

In an effort to compare the effectiveness of possible policy options to tackle a range of energy and environmental issues, we employ an integrated assessment model which couples a technology-rich bottom-up model of the U.S. electricity sector with a fully dynamic forward-looking general equilibrium model of the U.S. economy. The model provides a unique and consistent modeling framework for energy and environmental policy analysis. The results from the model show that a carbon tax would be the most cost-effective tool for lowering carbon dioxide emissions, and an energy tax would most cost-effectively lower total energy consumption. Though energy efficiency standards are found to be the least cost-effective at reducing energy usage or mitigating carbon emissions, their appeal is likely to rest on assumptions about specific market failures or on political factors. doi: 10.5547/ISSN0195-6574-EJ-Vol32-SI1-9

Suggested Citation

  • Mei Yuan & Sugandha Tuladhar & Paul Bernstein & Lee Lanen, 2011. "Policy Effectiveness in Energy Conservation and Emission Reduction," The Energy Journal, , vol. 32(1_suppl), pages 153-172, June.
    • Handle: RePEc:sae:enejou:v:32:y:2011:i:1_suppl:p:153-172
    DOI: 10.5547/ISSN0195-6574-EJ-Vol32-SI1-9
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