The Effects of Renewable or Clean Electricity Standards

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The Effects of Renewable or Clean Electricity Standards
by Douglas Elmendorf
Federal lawmakers have recently considered several policies to alter the mix of fuels used to generate electricity in the United States. Those policies—referred to as renewable or “clean” electricity standards—would lead to greater reliance on energy sources that produce few or no emissions of carbon dioxide (CO2), the most prevalent greenhouse gas contributing to climate change. Currently, only about 10 percent of U.S. electricity is produced from renewable sources.

A CBO study—prepared at the request of the Chairman and Ranking Member of the Senate Energy and Natural Resources Committee—examines how a federal renewable or clean electricity standard would change the mix of fuels used for electricity generation, the amount of CO2 emissions, and the retail price of electricity in different parts of the United States. In particular, the study explores how some proposed features of such standards would affect those outcomes. The study also highlights key design elements to help minimize the costs to U.S. households and businesses.
http://cboblog.cbo.gov/?p=2427