Highlights from NERA’s Analysis of the Clean Power Plan

NERA Economic Consulting analyzed some of the impacts of EPA’s Clean Power Plan.

The NERA analysis focused primarily on four different cap-and-trade scenarios for complying with the rule.  Two scenarios assume intra-state compliance where each state complies based on measures within its own borders.  The other two scenarios assume inter-state compliance where states establish regional cap-and-trade programs.

For each of these scenarios, NERA assumed that utilities would have to purchase all the allowance necessary for compliance or that half the allowances would have to be purchased and half would be allocated (free) to utilities.   These are some of the highlights of the analysis:

 

NERA Highlights 3

NERA’s model is calibrated to EIA’s Annual Energy Outlook (AEO) 2015 reference case projection.  In addition, NERA used data from third party sources such as EPA, NERC, NREL, and NETL.

November 2015


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