Modeling Carbon Reduction Policies in the U.S. Electric Sector

Steve Bernow

The U.S. electric sector contributes about 35 percent to the nation's total annual carbon dioxide emissions. Modeling climate change policies in the electric sector, however, poses a number of challenges. This report uses PCNEMS (1995 Version), a computer model constructed and applied by the Energy Information Administration (EIA), and ancillary analyses to assess several policies designed to reduce carbon dioxide emissions in this sector, including extension of EPACT renewables credits, system benefits charges for sustained orderly development of renewables, carbon taxes and caps, accelerated deployment of new technologies, and incentive financing.