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The Center for Economic and Policy Studies: dedicated to applying economic analysis to the design, implementation, and evaluation of public policy and to providing a better understanding of local and regional economies.
Dominion Virginia Power and Clean Power Plan Costs: A brief review of the Dominion’s 2015 Integrated Resource Plan compliance cost estimates
Dominion Virginia Power's 2015 Integrated Resource Plan filed with the State Corporation Commission presents cost estimates for complying with the proposed federal regulations, known as the Clean Power Plan (CPP), that force reductions in greenhouse gas emissions from existing power plants. The IRP incorrectly attributes to the CPP costs that would occur with or without the CPP. This and other modeling choices result in substantially overstated estimates of compliance costs.
Report on Appendix A-1 of the Virginia Energy Plan:
Impacts of Proposed Regulations under Section 111(d) of the Clean Air Act
A review of the Virginia Center for Coal and Energy Research cost estimates for complying with proposed federal rules limiting greenhouse gas emissions from existing power plants. The report contains a number of serious errors, greatly limiting its usefulness in evaluating state policy options.
Price and Quantity "Collars" for Stabilizing Emissions Allowance Prices: An Experimental Analysis of the EU ETS Market Stability Reserve
Charles Holt and William Shobe
This paper reports the results of a laboratory experiment with financially motivated participants that is used to compare alternative proposals for managing the time path of emissions allowance prices in the face of random firm-specific and market-level structural shocks. In this setting, market performance measures such as social surplus are enhanced by the use of a price collar (auction reserve price and soft price cap). Comparable performance enhancements are not observed with the implementation of a quantity collar that adjusts auction quantities in response to privately held inventories of unused allowances.