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Danny Cullenward and Shelley Welton published a paper forthcoming in the Yale Journal on Regulation Bulletin (Sept. 2018) discussing recent actions by FERC and implications for state energy and climate policies. A digital preprint is now available.
Managing the excess supply of allowances in California’s cap-and-trade program is arguably the most important question affecting the design of ARB’s post-2020 market
California’s “self-correcting” cap-and-trade auction mechanism does not eliminate market overallocation
ARB staff have suggested that California’s “self-correcting” cap-and-trade auction mechanism will address overallocation. Our calculations show this “self-correction” mechanism will eliminate only a fraction of the overallocation expected by 2020.
The California Air Resources Board’s report on allowance overallocation in the cap-and-trade program does not address whether overallocation will cause the state to exceed its 2030 climate target—and also makes a fundamental methodological error that undermines the Report’s own conclusions.
At a workshop earlier this month, ARB released its initial thinking on how to implement the post-2020 market design reforms required by AB 398. We comment on ARB’s overall market design proposal and proposed interpretation of AB 398 offsets limits.
At a workshop earlier this month, ARB released its initial thinking on how to implement the post-2020 market design reforms required by AB 398. We comment on ARB’s proposal and offer conceptual suggestions regarding market design and oversupply, with a goal of informing constructive discussion on these issues.
“California’s plan to integrate the West Coast grid is a great idea – that could easily backfire,” MIT Technology Review
“The Federal Energy Regulatory Commission, which oversees grid operators, is working to ‘actively distort energy markets to punish states taking steps to prioritize clean energy.'” Covering grid regionalization in the West, MIT Technology Review spoke with Near Zero’s Danny Cullenward.
“Serious financial markets care about what happens when things don’t go as planned.” Covering California’s cap-and-trade program and Ontario’s impending exit from the market, CALmatters spoke with Near Zero’s Danny Cullenward.
“China is creating a huge carbon market—but not a particularly aggressive one,” MIT Technology Review
Covering carbon pricing in China and around the world, MIT Technology Review referenced Near Zero’s work on California emission trends in sectors covered by the cap-and-trade system.
Covering carbon pricing efforts around the world, Jeffrey Ball, writing in Foreign Affairs, referenced Near Zero’s work on California emission trends in sectors covered by the cap-and-trade system.
Near Zero’s Danny Cullenward, writing with University of South Carolina’s Shelly Welton, authored an op-ed in Utility Dive on recent actions by FERC and implications for state energy and climate policies.
In an article tackling the diversity of energy sources used, and how to decarbonize the whole economy, The Christian Science Monitor quoted Near Zero's Danny Cullenward: “There’s more research saying it's going to be extremely inefficient and costly to run...
Covering California’s cap-and-trade program and the risks of market oversupply, CALmatters spoke with Near Zero’s Danny Cullenward.
“Full regionalization isn’t ‘strictly necessary to do most of the things that people advocate for,’ said Danny Cullenward, a research associate at the think tank Near Zero who has been studying the issue. ‘The notion that there’s one true path, I think, is deeply misguided.'”
When California imports electricity from other states, sometimes it involves “resource shuffling” that does not actually lead to lower greenhouse gas emissions, said Near Zero’s Danny Cullenward.
In discussions of California climate bill SB 775, one of the issues that has drawn the most criticism—and frankly, the most inaccurate criticism—regards linking the state’s cap-and-trade market with similar markets in other jurisdictions
Near Zero’s Danny Cullenward testified before the California Senate, commenting on ways of extending the state’s carbon pricing policy
California enacted one of the world’s most ambitious greenhouse gas reduction targets—achieving this goal will be a tremendous challenge