Decarbonization and electrification will require a transformed electricity grid. Our long-run model of entry and exit … of generation and storage capacity captures crucial aspects of the electricity industry such as time-varying demand for … electricity, intermittency of renewables, and intertemporal optimization of storage. We derive several theoretical possibilities …

Policies to cap emissions of carbon dioxide (CO2) in the U.S. economy could pose significant costs on the electricity … electricity sector, we evaluate alternative ways that emission allowances can be allocated. Most previous emissions trading … programs have allocated the major portion of allowances for free to incumbent firms. In the electricity sector this approach …

-protecting adaptations to high temperatures. The second part of the paper examines the private and external costs of electricity generation …. Extreme temperatures increase electricity demand in the residential sector (relative to moderate temperatures), but not in the … commercial, industrial, and transportation end-use sectors. The additional electricity demand in response to high temperatures …

Environmental policy is increasingly concerned with measuring emissions resulting from local changes to electricity … consumption. These marginal emissions are challenging to measure because electricity grids encompass multiple locations and the … as a high-dimensional aggregation problem: The effect of electricity consumption on emissions can be estimated precisely …

-protecting adaptations to high temperatures. The second part of the paper examines the private and external costs of electricity generation …. Extreme temperatures increase electricity demand in the residential sector (relative to moderate temperatures), but not in the … commercial, industrial, and transportation end-use sectors. The additional electricity demand in response to high temperatures …