The 1990 Clean Air Act Amendments and the Great Lakes economy: Challenges and opportunities
- Argonne National Lab., IL (United States)
- Solar Energy Research Inst., Golden, CO (United States)
This paper deals with the market for SO{sub 2} emission allowances over time and electric utility compliance choices. For currently high emitting plants ( > 2.5 lb SO{sub 2}/MMBtu), the 1990 Clean Air Act Amendments (CAAA) provide for about twice as many SO{sub 2} allowances to be issued per year in Phase 1 (1995--1999) than in Phase 2. Also, considering the scrubber incentives in Phase 1, there is likely to be substantial emission banking for use in Phase 2. Allowance prices are expected to increase over time at a rate less than the return on alternative investments, so utilities which are risk neutral or other potential speculators in the allowance market are not expected to bank allowances. The allowances will be banked by risk averse utilities or the utilities may buy forward contracts for SO{sub 2} allowances. However, speculators may play an important role by selling forward contracts for SO{sub 2} allowances to the risk averse utilities. The Argonne Utility Simulation Model (ARGUS) is being revised to incorporate the provisions of the CAAA acid rain title and to simulate SO{sub 2} allowance prices, compliance choices, capacity expansion, system dispatch, fuel use, and emissions. The revised model (ARGUS2) incorporates unit-level performance data and can incorporate unit-specific compliance decisions when these are known. The model has been designed for convenience in analyzing alternatives scenarios (demand growth rates, technology mix, economic parameters, etc). 1 ref., 5 figs.
- Research Organization:
- Argonne National Lab., IL (United States)
- Sponsoring Organization:
- USDOE; USDOE, Washington, DC (United States)
- DOE Contract Number:
- W-31109-ENG-38
- OSTI ID:
- 5081144
- Report Number(s):
- ANL/CP-74370; CONF-911184-5; ON: DE92001920; TRN: 91-032159
- Resource Relation:
- Conference: 13. annual North American conference of the International Association for Energy Economics, Chicago, IL (United States), 18-20 Nov 1991
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
99 GENERAL AND MISCELLANEOUS//MATHEMATICS, COMPUTING, AND INFORMATION SCIENCE
29 ENERGY PLANNING
POLICY AND ECONOMY
ELECTRIC UTILITIES
COMPLIANCE
HOT GAS CLEANUP
SULFUR DIOXIDE
EMISSION
US CLEAN AIR ACT
A CODES
ACID RAIN
AIR POLLUTION
COAL
COMPUTERIZED SIMULATION
CORRELATIONS
DECISION MAKING
ECONOMICS
FINANCIAL INCENTIVES
FOSSIL-FUEL POWER PLANTS
GREAT LAKES
MARKET
PRICES
SCRUBBERS
TRADE
ATMOSPHERIC PRECIPITATIONS
CARBONACEOUS MATERIALS
CHALCOGENIDES
COMPUTER CODES
ENERGY SOURCES
EQUIPMENT
FOSSIL FUELS
FUELS
LAKES
LAWS
MATERIALS
OXIDES
OXYGEN COMPOUNDS
POLLUTION
POLLUTION CONTROL EQUIPMENT
POLLUTION LAWS
POWER PLANTS
PUBLIC UTILITIES
PURIFICATION
RAIN
SIMULATION
SULFUR COMPOUNDS
SULFUR OXIDES
SURFACE WATERS
THERMAL POWER PLANTS
200600* - Fossil-Fueled Power Plants- Economic
Industrial
& Business Aspects- (1990-)
990200 - Mathematics & Computers
290300 - Energy Planning & Policy- Environment
Health
& Safety
200202 - Fossil-Fueled Power Plants- Waste Management- Noxious Gas & Particulate Emissions
296000 - Energy Planning & Policy- Electric Power