Subnational implications from climate and air pollution policies in India's electricity sector.

Emissions of greenhouse gases and air pollutants in India are important contributors to climate change and health damages. This study estimates current emissions from India's electricity sector and simulates the state-level implications of climate change and air pollution policies. We find that (i) a carbon tax results in little short-term emissions reductions because there is not enough dispatchable lower emission spare capacity to substitute coal; (ii) moving toward regional dispatch markets rather than state-level dispatch decisions will not lead to emissions reductions; (iii) policies that have modest emissions effects at the national level nonetheless have disparate state-level emissions impacts; and (iv) pricing or incentive mechanisms tied to production or consumption will result in markedly different costs to states.

Climate and Health Benefits of Rapid Coal-to-Gas Fuel Switching in the U.S. Power Sector Offset Methane Leakage and Production Cost Increases.

In this paper, we ask whether rapidly displacing coal electricity generation with underutilized, existing natural gas capacity has net societal benefits or net costs when considering climate change, economics, and air pollution. We use a power plant dispatch model to quantify the effects of dispatching because of a tax on carbon or because of a tax on carbon, methane leakage, and air pollution. We explicitly model exhaust stack CO2 emissions, production costs, health damages caused by criteria air pollutants, and methane leakage from the natural gas infrastructure. We show that (1) the optimal coal-to-gas redispatch displaces 62-77% of coal energy, leaving some coal online, (2) the health benefits of redispatch are larger in magnitude than the climate benefits, (3) reducing methane leakage rates from 2.3 to 2.0% increases the net climate benefits of redispatch by $1.1B-$1.4B, (4) although internalizing methane leakage, climate damages, and health damages in the power plant dispatch maximizes the net benefits of redispatch, 75-87% of these benefits can be achieved using a carbon tax mechanism alone, and (5) when choosing an optimal carbon tax, focusing on climate at the exclusion of health-and vice-versa-provides less net benefit than looking at both issues jointly.

Reduced-Order Dispatch Model for Simulating Marginal Emissions Factors for the United States Power Sector.

This study develops a reduced-order power plant dispatch model and uses it to simulate marginal emissions factors (MEFs) for the 2014-2017 United States (U.S.) electric grid at the North American Electric Reliability Corporation (NERC) regional level. MEFs help quantify the health, environmental, and climate change impacts caused by changes in marginal net electricity consumption, which could result, for example, from new technologies or policies. This study develops the model, validates it against historical data, and compares its simulated MEFs against historically derived regression-based MEFs. Our method accurately reproduces CO2, SO2, and NOx emissions for multiple U.S. NERC regions and years and enables us to analyze future scenarios that are absent from the historical data. Though historically derived regression-based MEFs are generally more accurate, our simulated MEFs provide a more nuanced picture of how clusters of low- or high-emitting power plants of similar production cost create large swings in MEFs throughout the day. Policymakers could use these dynamic MEFs to target demand-reduction strategies at high-emissions portions of the power plant merit order.