generation performance standard as alternative approaches for distributing carbon emission allowances in the electricity sector …. We solve a detailed national electricity market model and find the auction is roughly one-half the societal cost of the … competition in the electricity sector. The differences in the cost of the approaches flow from the effect of each approach on …

current emitters on the basis of a historic measure of electricity generation in an approach known as grandfathering. Recent … some performance metric in a recent year (the share of electricity generation or something else) and auctioning allowances … such as electricity price, the mix of generation technologies, and the emissions of conventional pollutants inside and …