Can the US Reach Biden's Climate Goal Without the CEPP?

David Robert's Volts newsletter cites RFF research about the effect of reconciliation policies, particularly a carbon fee, on power-sector emissions.

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Oct. 20, 2021

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Resources For the Future agrees but says a carbon fee could make up for it

Energy Innovations’ findings jibe with the second analysis, from Resources for the Future (RFF). RFF modeled three policies, in various combinations:

  • the clean-energy tax credits, which it calls CEAA for the “Clean Energy for America Act,” a bill from Sen. Ron Wyden (D-OR) that is largely included in the BBB Act;
  • the Clean Electricity Performance Program (CEPP); and
  • a carbon tax (er, fee) — the “central” carbon fee “starts at 15 $/metric ton and increases gradually to 30 $/metric ton by 2028, followed by a $10 annual increase through the end of the modeling period (2045).”

The CEAA tax credits alone, without the CEPP, gets the electricity sector to a 69 percent clean energy share by 2030. That is roughly in line with Energy Innovations’ high-end estimation of the tax credits’ impact.

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