Increasing the Value and Expanding the Market for Renewable Energy and Energy Efficiency With Clean Air Policies

February 2007

Citation:

ELR 10135

Issue

Author

Debra A. Jacobson

Debra A. Jacobson is Professorial Lecturer in Law at The George Washington University Law School and the owner of DJ Consulting LLC. She led the legal and policy analysis work on this project, funded by the U.S. Department of Energy's (DOE's) Wind Powering America Program and DOE's Clean Energy/Air Quality Integration Initiative. Alden Hathaway and Colin High led the technical analysis work. Liz Salerno, Policy Analyst with the American Wind Energy Association, provided input into the policy discussion. The analysis used in Figure 1 was supported by contracts from Connecticut Smart Power and Environment Resources Trust. The initial analysis of the avoided emissions for the Montgomery County wind purchase was supported by a contract with Clipper Windpower, Inc. The views expressed in this Article are solely those of the authors. Debra Jacobson can be contacted at djconsultingllc@earthlink.net. Colin High can be contacted at chigh@rsginc.com, and Alden Hathaway can be contacted at ahathaway@ert.net.

Editor's Summary: Around the United States, trading programs to limit greenhouse gas emissions are developing. Federal, state, and local governments are searching for ways to handle emissions, including increased use of renewable or zero-emissions energy sources, such as wind power. However, as Debra Jacobson explains in this Article, it may surprise many to learn that the CAA can diminish the market value of these alternative energy sources. She describes how fossil fuel emissions are displaced by renewable energy, and discusses how the Clean Air Interstate Rule interacts with state authority to regulate emissions. Finally, she concludes with future prospects for emission trading programs.