Emissions

A solar energy boom is taking place in California’s organized electricity market. Nine solar energy projects have been proposed in the state, totaling 4,300 megawatts (MW) of solar power – a remarkable total considering the total installed solar power capacity of the entire country totaled just over 2,000 MW in 2009.
 

In an op-ed this week, leading economists with MIT and Harvard urged policymakers not to “demonize” market-based policies to achieve national environmental and energy goals. The economists underscore the benefits of using market forces to bring about good policy outcomes in a least-cost manner, echoing COMPETE’s support for markets and market-based climate-change policies in a joint position paper with the Environmental Defense Fund.

While Congress and the Obama administration consider how to reduce greenhouse emissions and stimulate clean energy innovation, COMPETE urges all stakeholders involved in climate legislation talks to remember the power of a market-based approach.
 
Established results tell the tale – competitive markets offer the best path forward to achieve America’s energy needs and environmental objectives. In the Northeast, the Regional Greenhouse Gas Initiative (RGGI), which spans parts of two organized competitive electricity markets, is the first mandatory, market-based CO2 emissions reduction program in the U.S. – and it has been working successfully for several years.
 
By phasing in an approach to emissions reductions, set against an established cap, RGGI has provided predictable market signals, regulatory certainty businesses can operate against, and much-needed revenue for participating states. Best of all, the system is supported by the consumers it serves.