Model situation?
In 2009, when the United States fell into economic recession, greenhouse gas emissions also fell, by 6.59 percent relative to 2008. In the power sector, however, the recession was not the main cause. Researchers at the Harvard School of Engineering and Applied Sciences (SEAS) have shown that the primary explanation for the reduction in CO2 emissions from power generation that year was that a decrease in the price of natural gas reduced the industry’s reliance on coal. According to their econometric model, emissions could be cut further by the introduction of a carbon tax, with negligible impact on the price of electricity for consumers. A regional analysis, assessing the long-term implications for energy investment and policy, appears in the journal Environmental Science & Technology. In the United States, the power sector is responsible for 40 percent of all carbon emissions. In 2009, CO2 emissions from power generation dropped by 8.76 percent. The researchers attribute that...