A simple model for assessing emissions reduction options

This paper introduces a simple system-level emissions model suitable for assisting regulators to design efficient integrated resource planning rules. Given choices that include life-extending existing capacity, investing in new generation, and demand-side management, it identifies cost-effective pollution reduction strategies. A set of examples using aggregated regional data shows that superior solutions differ across pollutants and regions. This implies that policy prescriptions should account for differences in existing capacity characteristics in order to be efficient. Specifically, regulations should not focus only on marginal capacity choices, but should compare complete resource portfolios