The impact of carbon pricing
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The document discusses the impact of carbon pricing on electricity costs in Australia. It states that carbon pricing will cause electricity prices to rise by different amounts in each state, ranging from 4.6% in South Australia to 14.2% in the Australian Capital Territory. As an example, it estimates that carbon pricing will increase costs in Queensland by around 2.4 cents per kilowatt hour, which would equate to under a 5% increase on the total electricity bill for the average residential tariff 11 customer in that state.
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Copyright by:
Sujan Kumar Karki
2017
To: Meena and Laba Karki
Acknowledgement
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LIST OF ACRONYMS
ACES: American Clean Energy and Security
CO2: Carbon dioxide
CO: Carbon monoxide
EPA: Environment Protection Agency
GHGs: Greenhouse Gases
GDP: Gross Domestic Product
ATM: Automated Teller Machine
MW: Megawatt
EU ETS: European Union Emissions Trading System
RGGI: Regional Greenhouse Gas Initiative
SCC: Stop Climate Change
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Abstract7
Introduction7
Effects of emissions on climate change10
Industrial processes10
SOLVENTS AND OTHER PRODUCT USE11
Agriculture11
Wastes12
Land use and forestry13
Transportation13
Energy intensity14
CAP- AND- DIVIDEND – The basics16
Permits versus Taxes19
Potential uses of carbon pricing taxes in the state level20
Tax cuts20
Returning money to households or electricity consumers21
Deficit reduction21
Investment in combating climate change21
Transitional assistance22
Carbon Pricing Design Features22
Scope22
Point of regulation23
Reporting and verification23
Setting the price or cap24
Changes in the carbon price over time26
Cost- containment mechanism28
Offsets28
Price ceiling and floors in carbon taxing29
Complimentary policies30
Addressing emissions and sources outside the program scope30
Energy efficiency30
Regulations and standards31
Investing in enabling technologies31
Research and development32
Benefits of EPA standards in Ohio State32
Primary Policy Options34
Next steps35
Conclusion36
References39
Abstract
Ohio is one of the states in the US that advocates the use of a kind of energy that does not cause any effects on the climate change. Due to the diverse effects of climate change many states have created taxes which will take care of the environment. Ohio is the first state in the US that rolled back clean energy mandates when they signed a bill that is called SB 310 to be a state law. The law was backed by deep- pocketed Ohio- based utilities as well as conservative groups. The bill came exactly a week after the EPA announced tough new rules on carbon emissions that were coming from power plants and other industries or factories. Looking at it closely, the impacts on consumers of a cap on carbon emissions are different across the income levels as well as in the different states of the US. This paper is going to look at the benefits ...
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The impact of carbon pricing
- 1. The Impact Of Carbon Pricing We all know it is coming and we’ve spent months, even years, debating its effectiveness and whether the Government will survive long enough to see it implemented. Well now it’s here and the only question left is ‘how much’? Love it or loathe it, the biggest question on everyone’s lips at the moment is about how much it will change our cost of living. I am, of course, referring to the carbon tax and electricity pricing is the seen as the most obvious and measureable yardstick when it comes to monitoring the impact of the price of carbon on our daily lives. As with most things that involve a mix of Federal and State regulation, there is not a simple answer. The price change attributable to carbon pricing will vary across the States and will vary according to your tariff. These variances are caused by a number of factors including the type of fuel used to generate the electricity and access to the national grid. Estimates have been developed for each of the States below. These estimates are taken from the Clean Energy Future website (www.cleanenergyfuture.gov.au). NSW SA QLD TAS WA NT ACT VIC 8.9% 4.6% 11% 5.6% 9.1% 6.8% 14.2% 11% In Queensland, the increase in electricity costs because of carbon pricing is estimated to be around 2.4c per kWh in consumption. To put some perspective on it, the average price on tariff 11 (residential) is around 23c per kWh. Given that consumption equals around half of your electricity bill (the other half is a fixed transmission cost), the effect of carbon pricing should be just under 5% of your total bill.