A SIMPLE-MODEL FOR ASSESSING EMISSIONS REDUCTION OPTIONS

This paper introduces a simple system-level emissions model suitable f or regulators to design efficient integrated resource planning rules. Given choices that include life-extending existing capacity, investing in new generation, and demand-side management, it identifies cost-eff ective pollution reduction strategies. A set of examples using aggrega ted regional data shows that superior solutions differ across pollutan ts and regions. This implies that policy prescriptions should account for differences in existing capacity characteristics in order to be ef ficient. Specifically, regulations should not focus only on marginal c apacity choices, but should compare complete resource portfolios.