All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Nehan Naim
''Do Subsidies Extend Lifeline to Coal?''
( 2022, Vol. 42 No.2 )
Emphasis on cleaner power sector and the need for maintaining system reliability often have contrasting influence on fossil fueled electricity generation. This paper contributes to the literature by evaluating the impact of capacity subsidies, which were introduced by the northeastern Regional Transmission Organizations to ensure resource adequacy, on the retirements of electricity generation in the US. Using state level data, I present evidence that states with capacity mechanisms have experienced decelerated retirements compared to states with no capacity markets overall, but not for coal-fired generation in particular. Findings also suggest that renewable energy policies like the Renewable Portfolio Standard are more effective in achieving sustainable energy goals.
Keywords: Regulations; Energy; Subsidies; Market Design
JEL: L5 - Regulation and Industrial Policy: General
Q4 - Energy: General
Manuscript Received : May 03 2021 Manuscript Accepted : Jun 30 2022

  This abstract has been downloaded 66 times                The Full PDF of this paper has been downloaded 153794 times