Environmental and Technology Policy Options in the Electricity Sector: Are We Deploying Too Many?

摘要: Myriad policy measures aim to reduce greenhouse gas emissions from the electricity sector, promote generation renewable sources, and encourage energy efficiency (EE). Prior literature has argued that overlapping policies of markets, absent other market failures. We extend model Fischer Newell incorporate knowledge spillovers for both advanced conventional technologies, as well imperfections in demand EE investments. undervaluation can justify interventions raises importance fully pricing social costs electricity, making (like subsidies) lower prices less desirable. Innovation failures some technology policies, particularly correcting R&D incentives, but aggressive deployment seem unlikely enhance welfare when placed alongside sufficient pricing. Even with multiple failures, remains most cost-effective option reducing emissions. However, technology-oriented involve redistribution surplus.