The Effect of Abundant Natural Gas on Air Pollution from Electricity Production
نویسندگان
چکیده
We estimate the impact of large changes in the relative prices of natural gas and coal from 2005-2011, due primarily to “fracking,” on regional electricity marginal costs and air pollution emissions from electricity producers. We find strong evidence that natural gas is displacing coal as baseload. We estimate marginal emissions over the generation profile for each region in the U.S. using a novel identification strategy and find fuel prices significantly influence marginal emission rates. We then evaluate two supply-side policies to highlight the influence of fuel prices on non-market benefits of supply side policies as a function of fuel prices. JEL Classification: Q4, Q5, D8
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