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Hard NOx: Three Essays on the Perfor...

Nakolan, Kevin.

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Hard NOx: Three Essays on the Performance of Environmental Policy in the U.S. Electricity Sector.

紀錄類型:	書目-電子資源 : Monograph/item
正題名/作者:	Hard NOx: Three Essays on the Performance of Environmental Policy in the U.S. Electricity Sector./
作者:	Nakolan, Kevin.
出版者:	Ann Arbor : ProQuest Dissertations & Theses, : 2020,
面頁冊數:	107 p.
附註:	Source: Dissertations Abstracts International, Volume: 82-03, Section: B.
Contained By:	Dissertations Abstracts International82-03B.
標題:	Energy. -
電子資源:	https://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=27738612
ISBN:	9798664719543

Hard NOx: Three Essays on the Performance of Environmental Policy in the U.S. Electricity Sector.
Nakolan, Kevin.

Hard NOx: Three Essays on the Performance of Environmental Policy in the U.S. Electricity Sector. - Ann Arbor : ProQuest Dissertations & Theses, 2020 - 107 p.

Source: Dissertations Abstracts International, Volume: 82-03, Section: B.

Thesis (Ph.D.)--University of California, Davis, 2020.

This item must not be sold to any third party vendors.

This dissertation focuses on understanding the private and social impacts of environmental policies amid the diverse landscape of the U.S. electricity sector. Many of the environmental policies we employ today are grounded in economic theory. In theory, these programs are efficient, allowing us to achieve a desired environmental outcome at the lowest possible cost to society. Unfortunately, however, it is exceedingly rare for markets to conform to the ideal standards by which these theories are based. The U.S. electricity sector is a prime example of this. Our national electricity markets are rife with what we could consider to be market imperfections. These imperfections often influence the performance of our environmental policies, leading to unintended and potentially detrimental environmental and societal outcomes. This dissertation consists of three essays that focus on various environmental policies in place within the U.S. electricity sector, and how imperfections in the electricity market shape the performance of said policies.Chapter 2 focuses on a cap and trade program for nitrogen oxide emissions in the eastern United States known as the NOX Budget Trading Program (NBP). While the NBP undoubtedly led to significant reductions in nitrogen oxide emissions, current estimates of the program's performance may be overstated, as they fail to account for exogenous trends in emissions rates. Additionally, the means by which these emissions reductions were achieved is unclear. In this chapter, I use daily emissions and generation data for fossil fuel units in the NBP region to re-evaluate the efficacy of the program, and to identify how this abatement was achieved. I find the NBP led to a 50% drop in emissions, relative to a counterfactual estimate, with over 70% of these reductions achieved through falling emissions intensity at existing fossil fuel generators.Chapter 3 also focuses on the NBP, building upon the results from Chapter 2. Declining emissions rates in the NBP can be largely attributed to operation of emissions control technology. This chapter analyzes whether or not electricity generators are operating this technology efficiently with regard to the price incentives created by the cap and trade program (i.e. pollution permits, or lack thereof). Consistent with long-standing IO literature, I find that regulations on retail electricity rates fail to incentivize cost-minimizing behavior from electricity generators, leading generators to overuse expensive technology when complying with program. I show that overuse of this technology is often not beneficial, with the private cost of operating the technology often outweighing its environmental benefits, and may be creating even more detrimental effects under current cap and trade programs.Chapter 4 investigates the impact of growing solar generating capacity on air pollution outcomes in California. California has experienced an explosive growth in solar generating capacity over the last decade, and is anticipated to grow even further in coming years. Recent literature has shown that this growth in solar generating capacity has led to an increase in generation from relatively dirty fossil fuel generators during the early morning and later afternoon, when demand for electricity is high and solar generating capabilities are low. This chapter considers the local air pollution damages associated with this increase in fossil fuel generation and, more importantly, whether or not these damages are disproportionately affecting more susceptible parts of the state.

ISBN: 9798664719543Subjects--Topical Terms:

876794
Energy.
Subjects--Index Terms:

Air pollution

Hard NOx: Three Essays on the Performance of Environmental Policy in the U.S. Electricity Sector.
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520 $a This dissertation focuses on understanding the private and social impacts of environmental policies amid the diverse landscape of the U.S. electricity sector. Many of the environmental policies we employ today are grounded in economic theory. In theory, these programs are efficient, allowing us to achieve a desired environmental outcome at the lowest possible cost to society. Unfortunately, however, it is exceedingly rare for markets to conform to the ideal standards by which these theories are based. The U.S. electricity sector is a prime example of this. Our national electricity markets are rife with what we could consider to be market imperfections. These imperfections often influence the performance of our environmental policies, leading to unintended and potentially detrimental environmental and societal outcomes. This dissertation consists of three essays that focus on various environmental policies in place within the U.S. electricity sector, and how imperfections in the electricity market shape the performance of said policies.Chapter 2 focuses on a cap and trade program for nitrogen oxide emissions in the eastern United States known as the NOX Budget Trading Program (NBP). While the NBP undoubtedly led to significant reductions in nitrogen oxide emissions, current estimates of the program's performance may be overstated, as they fail to account for exogenous trends in emissions rates. Additionally, the means by which these emissions reductions were achieved is unclear. In this chapter, I use daily emissions and generation data for fossil fuel units in the NBP region to re-evaluate the efficacy of the program, and to identify how this abatement was achieved. I find the NBP led to a 50% drop in emissions, relative to a counterfactual estimate, with over 70% of these reductions achieved through falling emissions intensity at existing fossil fuel generators.Chapter 3 also focuses on the NBP, building upon the results from Chapter 2. Declining emissions rates in the NBP can be largely attributed to operation of emissions control technology. This chapter analyzes whether or not electricity generators are operating this technology efficiently with regard to the price incentives created by the cap and trade program (i.e. pollution permits, or lack thereof). Consistent with long-standing IO literature, I find that regulations on retail electricity rates fail to incentivize cost-minimizing behavior from electricity generators, leading generators to overuse expensive technology when complying with program. I show that overuse of this technology is often not beneficial, with the private cost of operating the technology often outweighing its environmental benefits, and may be creating even more detrimental effects under current cap and trade programs.Chapter 4 investigates the impact of growing solar generating capacity on air pollution outcomes in California. California has experienced an explosive growth in solar generating capacity over the last decade, and is anticipated to grow even further in coming years. Recent literature has shown that this growth in solar generating capacity has led to an increase in generation from relatively dirty fossil fuel generators during the early morning and later afternoon, when demand for electricity is high and solar generating capabilities are low. This chapter considers the local air pollution damages associated with this increase in fossil fuel generation and, more importantly, whether or not these damages are disproportionately affecting more susceptible parts of the state.
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