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Transmission Impossible? Prospects for Decarbonizing the US Grid

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  • Lucas W. Davis
  • Catherine Hausman
  • Nancy L. Rose

Abstract

Encouraged by the declining cost of grid-scale renewables, recent analyses conclude that the United States could reach net zero carbon dioxide emissions by 2050 at relatively low cost using currently available technologies. While the cost of renewable generation has declined dramatically, integrating these renewables would require a large expansion in transmission to deliver that power. Already there is growing evidence that the United States has insufficient transmission capacity, and current levels of annual investment are well below what would be required for a renewables-dominated system. We describe a variety of challenges that make it difficult to build new transmission and potential policy responses to mitigate them, as well as possible substitutes for some new transmission capacity.

Suggested Citation

  • Lucas W. Davis & Catherine Hausman & Nancy L. Rose, 2023. "Transmission Impossible? Prospects for Decarbonizing the US Grid," NBER Working Papers 31377, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31377
    Note: EEE
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    Cited by:

    1. David Rapson & Erich Muehlegger, 2023. "Global Transportation Decarbonization," Journal of Economic Perspectives, American Economic Association, vol. 37(3), pages 163-188, Summer.
    2. Rangrang Zheng & Greg Schivley & Patricia Hidalgo-Gonzalez & Matthias Fripp & Michael J. Roberts, 2024. "Optimal transmission expansion minimally reduces decarbonization costs of U.S. electricity," Papers 2402.14189, arXiv.org.
    3. Robert Huang & Matthew E. Kahn, 2024. "United States Electric Utility Adaptation to Natural Hazards and Green Power Mandates," Economics of Disasters and Climate Change, Springer, vol. 8(2), pages 263-282, July.
    4. Li, Jianglong & Ho, Mun Sing, 2024. "End-year China wind power installation rush reduces electric system reliability," Energy Economics, Elsevier, vol. 133(C).

    More about this item

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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