A Model Clean Energy Standard

Policymakers are now examining a “clean energy standard” as an alternative to greenhouse gas cap-and-trade regulation. This article presents a model CES that drives absolute CO2 reductions, and is indifferent to generation type. It awards credits based upon relative CO2 emissions and retires credits in a system that encourages energy efficiency. The system can link with existing and future GHG regulation, and would accommodate state renewable energy standards.