My poster, A Mandatory US Carbon Emissions Ceiling (Cap) Will Reduce the Cost Advantage of Fossil Electricity Over Wind Electricity, was presented at the WINDPOWER 2008 Conference & Exhibition, June 1-4, Houston, TX.  It is based on my working paper of the same name. My poster was located at the Poster Topic: Government Policies. For a complete list of poster topics go to: http://www.windpowerexpo.org/posters.cfm

Abstract

Burning fossil fuel (coal, natural gas, fuel oil) to generate electricity creates carbon. Wind generated electricity has no carbon emissions.  Carbon emissions are causing global warming.  The implantation of a Kyoto Protocol like mandatory US carbon emission reduction program will reduce global warming by reducing US greenhouse gas (GHG) emissions. A US carbon reduction program will add the cost of carbon emission controls to the cost of generating fossil fuel electricity. A mandatory US carbon reduction program is, therefore, a great benefit to the wind industry because it will reduce the relative cost advantage of fossil electricity.

This working paper examines the potential US carbon emission reduction architectures (cap and control, cap and trade, carbon tax) to determine which architecture will cause the greatest reduction in the relative cost advantage that fossil electricity now has over wind electricity and which architecture has the greatest chance of being accepted in Washington. The paper examines each architecture’s significant structural components (the details).  For the carbon tax, it is the definition of the tax base; t_m- CO₂/t_m-fossil fuel or t_m- CO₂/MWh.  For cap and trade, the most popular architecture, it is auctioning verse the assignment of carbon emission units and banking.  For cap and command, it is setting up of an efficient command structure. The current status of the working paper is a poster comparing the three emission control architectures and a determination of which architecture gives the greatest reduction in fossil fuel’s relative cost advantage.  A mandatory US carbon emission reduction program increases wind electricity's economic position. 

21 May 2008 

Illinois' Mendota Hills Wind Plant when it was under construction

Source: Michael Stavy Photo Collection 

Black ink illustration of wind turbines located along I-10, San Gorgonio Pass, San Bernardino Mountains, Palm Springs, CA.

Used with permission of the artist: Christine BOIRY