The Marginal Effects of the Price for Carbon Dioxide: Quantifying the Effects on the Market for Electric Generation in Florida

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. In cooperation with the State of Florida's Department of Environmental Protection, the authors have constructed a model to simulate the dispatch of electric generating units to serve electric load in the state – and obtained some counterintuitive results.