Gowrisankaran, Gautam; Langer, Ashley; Reguant, Mar - National Bureau of Economic Research - 2024
Natural gas has replaced coal as the dominant fuel for U.S. electricity generation. However, U.S. states that regulate … electric utilities have retired coal more slowly than others. We build a structural model of rate-of-return regulation during … an energy transition where utilities face tradeoffs between lowering costs and maintaining coal capacity. We find that …