Full Title: The Future of Cap-and-Trade Program in California: Will Low GHG Prices Last Forever?
Author(s): Yingxia Yang, Michael Hagerty, Ashley Palmarozzo, Metin Celebi, Marc Chupka, Hannah Sheffield
Publisher(s): The Brattle Group
Publication Date: December 1, 2017
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Description (excerpt):
In this paper, we analyze how the California GHG market has performed to date and where it could be heading as GHG caps tighten in the future to a 40% reduction below 1990 levels by 2030 and an 80% reduction by 2050. Our approach goes a step further than the economic analysis in the California Air Resources Board’s (ARB) 2017 Updated Scoping Plan by simulating how the interaction of electric and non-electric sectors could affect GHG emissions reductions, GHG allowance prices, and electric power prices over the long run after accounting for the GHG abatement accomplished through complementary measures