Interactions Between Climate Policies in the Power Sector - Green Energy and Efficiency: An Economic Perspective - page 273

Table 1 (continued)

Scenarios Impact

Study Country CO 2

target

RES-E
target

Instrument CO 2

price
€ /
tCO 2

Retail power prices (%
change with reference to
no policies * or to carbon
price only**)

Policy costs

Morris et a.l
[ 22 ]

US 80.0 % - TEP $235 - There is a negative effect on welfare related

to the introduction of RPS policy. Speci-
cally, the effect of adding a 20 % RPS
requirement to the existent cap-and-trade
policy, implies a loss of 1.50% in terms of
welfare for the year 2030, and

80 % 20 % TEP +

RPS

$191 -

− 2.3 % for the

year 2050.

FIT: Feed-in Tariff, TEP: Tradable Emission Permits, RPS: Renewable Portfolio Standard, TGCs: Tradable Green Certicates