Implications of Carbon Regulation for Green Power Markets

Technical Report · Sun Apr 01 00:00:00 EDT 2007

DOI:https://doi.org/10.2172/903074· OSTI ID:903074

Bird, L; Holt, E; Carroll, G

This paper examines the potential effects that emerging mandatory carbon markets have for voluntary markets for renewable energy, or green power markets. In an era of carbon regulation, green power markets will continue to play an important role because many consumers may be interested in supporting renewable energy development beyond what is supported through mandates or other types of policy support. The paper examines the extent to which GHG benefits motivate consumers to make voluntary renewable energy purchases and summarizes key issues emerging as a result of these overlapping markets, such as the implications of carbon regulation for renewable energy marketing claims, the demand for and price of renewable energy certificates (RECs), and the use of RECs in multiple markets (disaggregation of attributes). It describes carbon regulation programs under development in the Northeast and California, and how these might affect renewable energy markets in these regions, as well as the potential interaction between voluntary renewable energy markets and voluntary carbon markets, such as the Chicago Climate Exchange (CCX). It also briefly summarizes the experience in the European Union, where carbon is already regulated. Finally, the paper presents policy options for policymakers and regulators to consider in designing carbon policies to enable carbon markets and voluntary renewable energy markets to work together.

• Research Organization: National Renewable Energy Laboratory (NREL), Golden, CO.
• Sponsoring Organization: USDOE
• DOE Contract Number: AC36-99GO10337
• OSTI ID: 903074
• Report Number(s): NREL/TP-640-41076
• Country of Publication: United States
• Language: English

Related Subjects

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
54 ENVIRONMENTAL SCIENCES
CARBON
CARBON REGULATION
CLIMATE CHANGE
CLIMATE POLICY
CLIMATES
Energy Analysis
EUROPEAN UNION
GREEN POWER
GREENHOUSE GAS EMISSIONS
GREENHOUSE GASES
MARKETING
PRICES
RECS
REGULATIONS
RENEWABLE ENERGY CERTIFICATES
RENEWABLE ENERGY MARKETS
RENEWABLE ENERGY SOURCES
VOLUNTARY MARKETS