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Emissions, Transmission, and the Environmental Value of Renewable Energy

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  • Fell, Harrison
  • Kaffine, Daniel T.
  • Novan, Kevin

Abstract

We examine how transmission congestion alters the environmental benefits provided by renewable generation. Using hourly data from the Texas and Mid-Continent electricity markets, we find that relaxing transmission constraints between the wind-rich areas and the demand centers of the respective markets conservatively increases the non-market value of wind by 31% for Texas and 13% for Mid-Continent markets. Much of this increase in the non-market value arises from a redistribution in where air quality improvements occur { when transmission is not constrained, wind offsets much more pollution from fossil fuel units located near highly populated demand centers.

Suggested Citation

  • Fell, Harrison & Kaffine, Daniel T. & Novan, Kevin, 2019. "Emissions, Transmission, and the Environmental Value of Renewable Energy," CEnREP Working Papers 283718, North Carolina State University, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:nccewp:283718
    DOI: 10.22004/ag.econ.283718
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    File URL: https://ageconsearch.umn.edu/record/283718/files/WP-2019-015.pdf
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    Keywords

    Environmental Economics and Policy;

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