Policies to cap emissions of carbon dioxide (CO2) in the U.S. economy could pose significant costs on the electricity sector, which contributes roughly 40 percent of total U.S. CO2 emissions. Whether producers or consumers bear the cost of this regulation depends on whether generators are...

Substantially reducing carbon dioxide (CO2) emissions from electricity production will require a transformation of the resources used to produce power. This paper analyzes the economic consequences of a suite of different flexible and comprehensive policies to reduce CO2 emissions from the power...