The Marginal Effects Of The Price For Carbon Dioxide: Quantifying The Effects On The Market For Electric Generation In Florida

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Executive Summary

Greater emphasis on public policy aimed at internalizing the societal cost of carbon dioxide emissions leads to more questions about the economic impacts of that policy. The United States Congressional Budget Office, Environmental Protection Agency, and Department of Energy's Energy Information Administration have all recently released their estimates of the macro-economic impact of various proposals for environmental legislation. The focus of these studies is on the level of certain output variables such as the level of carbon dioxide emissions, the cost of emissions allowances, and the broad impact of increased electricity prices, rather than microeconomic or marginal effects of policy change.

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