Redesigning Renewable Electricity Policies Can Slash Emissions and Costs
Renewable electricity policies in the US aim to reduce emissions by promoting wind, solar, and other renewable generators. The debate on the costs and benefits of these policies overlooks important interactions within the power system. The value of renewable electricity depends on what it replaces, and a surge in renewables can lower prices, leading to increased fossil fuel use. By focusing on high-value generators and funding subsidies through electricity charges, emissions can be reduced more effectively and at a lower cost.