The overlapping impact of the Emission Trading System (ETS) and renewable energy (RE) deployment targets creates a classic case of interaction effects. Whereas the price interaction is widely recognized and has been thoroughly discussed, the effect of an overlapping instrument on the abatement...

We argue for the resurrection of an old idea: electricity use as an indicator of U.S. economic activity. Our analysis relies on associations - the 40-year correlation between growth rates in real GDP and electricity use can be as high as 89% - and intuition. Electricity use and economic...