Matching Items (3)
Filtering by
- All Subjects: Electricity
- All Subjects: Sustainability
- Member of: Theses and Dissertations
- Member of: Barrett, The Honors College Thesis/Creative Project Collection
Description
The Clean Power Plan seeks to reduce CO2 emissions in the energy industry, which is the largest source of CO2 emissions in the United States. In order to comply with the Clean Power Plan, electric utilities in Arizona will need to meet the electricity demand while reducing the use of fossil fuel sources in generation. The study first outlines the organization of the power sector in the United States and the structural and price changes attempted in the industry during the period of restructuring. The recent final rule of the Clean Power Plan is then described in detail with a narrowed focus on Arizona. Data from APS, a representative utility of Arizona, is used for the remainder of the analysis to determine the price increase necessary to cut Arizona's CO2 emissions in order to meet the federal goal. The first regression models the variables which affect total demand and thus generation load, from which we estimate the marginal effect of price on demand. The second regression models CO2 emissions as a function of different levels of generation. This allows the effect of generation on emissions to fluctuate with ranges of load, following the logic of the merit order of plants and changing rates of emissions for different sources. Two methods are used to find the necessary percentage increase in price to meet the CPP goals: one based on the mass-based goal for Arizona and the other based on the percentage reduction for Arizona. Then a price increase is calculated for a projection into the future using known changes in energy supply.
ContributorsHerman, Laura Alexandra (Author) / Silverman, Daniel (Thesis director) / Kuminoff, Nicolai (Committee member) / Department of Economics (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
The welfare consequences of price versus quantity-based regulation are known to differ when information about marginal benefits or costs of abatement is imperfect. Does uncertainty about demand for the polluting good also matter for welfare of these two approaches to regulation? In chapter 1, I use plant-level survey data and high frequency variation in power consumption to assess the dynamic implications of uncertainty about future demand for the relative welfare consequences of carbon taxes and cap-and-trade regulation. I address this question in the context of the electricity sector where demand risk is particularly salient. I show that the choice between policy instruments depends on how firms and consumers balance unpredictable output volatility (higher with carbon taxes) vs. price volatility (higher with cap-and-trade regulation). Over a wide range of policy-relevant abatement targets, I find carbon taxes outperform cap-and-trade in terms of welfare. Financial incentives like the Production Tax Credit are central initiatives behind wind power as the leading renewable energy source in the U.S. But do institutional design features of energy markets matter for cost-effectiveness of subsidies to wind investments? In chapter 2, I answer this question by investigating how the design of procurement contracts that are typically used by wind developers affects their investment incentives. Using unit-level data from wind farm production and installed capacity, I find that structuring subsidies based on key features of the type of procurement contracts associated to wind projects leads to major reductions in public expenditures in terms of subsidy payments to wind developers without undermining their investment incentives. The U.S. federal government is known to have a history of heavily subsidizing the wind power industry. Subsidies either to output (Production Tax Credit) or investment goods (Investment Tax Credit) have been critical to replace emissions-intensive technologies with wind power. Which type of subsidy is best to incentivize wind investments at the least cost? In chapter 3, I use plant-level data of wind facilities from the Texas electricity market to develop and estimate a model of investment decisions that accounts for productivity shocks at the wind farm level and prudent behavior of developers. I find that subsidizing production can increase average yearly investment rates in wind capacity up to 2.5 percentage points over mean investment rates under alternative subsidies to capital. This is driven by precautionary savings that developers accumulate to smooth out potential future shocks to investment income when adverse weather conditions lead to low subsidy payments.
ContributorsGómez Trejos, Felipe Alberto (Author) / Silverman, Daniel (Thesis advisor) / Fried, Stephie (Committee member) / Ventura, Gustavo (Committee member) / Kuminoff, Nicolai (Committee member) / Arizona State University (Publisher)
Created2023
Residential Choice’s Impact on Sustainable Transportation Options: A Study in the Phoenix Metro Area
Description
This study adds to the literature about residential choice and sustainable transportation. Through the interviews and the personal stories gathered, there was diversity shown in the residential location choice process. We also noticed that “commute” means different things to different households, and that many people did not consider their commute to work to be a primary factor determining their final home location. Moreover, many people were willing to increase their commute time, or trade access to desirable amenities for a longer commute. Commuting time to work was one example of the tradeoffs that homeowners make when choosing a home, but there were also others such as architectural type and access to neighborhood amenities. Lastly, time constraints proved to be a very significant factor in the home buying process. Several of our households had such strict time constraints that limited their search to a point of excluding whole areas. Overall, our study sheds light on transportation’s role in residential choice and underscores the complexity of the location choice process.
ContributorsKats, Elyse Nicole (Author) / Salon, Deborah (Thesis director) / Kuminoff, Nicolai (Committee member) / School of Sustainability (Contributor) / School of Geographical Sciences and Urban Planning (Contributor) / School of Community Resources and Development (Contributor) / Barrett, The Honors College (Contributor)
Created2019-05