Interacting policies in power systems: Renewable subsidies and a carbon tax

Vivek Bhandari, Anthony M. Giacomoni, Bruce F Wollenberg, Elizabeth J Wilson

Research output: Contribution to journalArticle

3 Scopus citations

Abstract

Without careful planning and design, energy policies like carbon taxes and renewable subsidies like production tax credits undercut one another in unanticipated ways. We examine how a carbon tax interacts with PTCs by simulating an electricity market using the IEEE RTS model with a carbon tax of $38/tonCO2e and a PTC of $23/MWh. The results show that PTCs work against the carbon tax by both lowering average energy prices and altering the generator dispatch.

Original languageEnglish (US)
Pages (from-to)80-84
Number of pages5
JournalElectricity Journal
Volume30
Issue number6
DOIs
StatePublished - Jul 2017

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    Bhandari, V., Giacomoni, A. M., Wollenberg, B. F., & Wilson, E. J. (2017). Interacting policies in power systems: Renewable subsidies and a carbon tax. Electricity Journal, 30(6), 80-84. https://doi.org/10.1016/j.tej.2017.06.004