Work

Greenhouse gases resulting from grid‐connected electricity demand

Year: 2026

Type: article

Abstract: Many businesses would like to claim their electricity use results in no greenhouse gases. Because electricity cannot be traced from specific generators to purchasers, regulators and users propose an approximation. Clean electricity use would meet three conditions, or “pillars.” It must be generated (1) nearby, (2) during the same hour, and (3) by newly constructed plants. Qualifying electricity use would be cleaner than average but not carbon‐free, with average incremental emissions ranging from 69% to 100% of unrestricted emissions. The conditions limit the amount of already‐existing power that can be claimed, and so could encourage construction of clean capacity.

Source: Contemporary Economic Policy

DOI: 10.1111/coep.70054

Authors: Karl Dunkle Werner, Arik Levinson

Institutions: California Public Utilities Commission, National Bureau of Economic Research, Georgetown University

Language: English

Topic: Climate Change Policy and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Affordable and clean energy, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $2,970