Capture, treatment, and proper disposal of effluents and waste products, including
long-term storage where needed, must be a focus in power plant planning. None of
the power plants listed in Table 8.2 are exempt from such scrutiny. While carbon
dioxide production is particularly significant for power plants involving combustion,
every plant type listed has carbon dioxide production in at least some of its life-cycle
phases. The same can be said for other environmental and human-health impacts
ranging from adverse land use to contamination of drinking water.
Public policy makers today have to consider not only the best ways to provide a
reliable power supply but also how to do so judiciously. They should revisit entrenched
regulations and practices suited to power generation and use in twentieth-century
power generation but that now may stifle innovation. They also should be prepared
to innovate when opportunities arise. See the Horizons feature that follows.
Policy makers must think critically about how to promote increased efficiency.
Yet they must be watchful of a rebound effect sometimes observed when a resource,
coal for instance, is used more efficiently to develop a product, electricity for
instance. Efficiency-induced cost reductions can spur such demand for the product
that little or no reduction in consumption of the resource occurs. With exceptional
product demand, resource consumption can even rebound to a greater level than
before.
Decision making in such a constrained social and technical environment is clearly
a balancing act. Still, wise planning, including rationally decreasing waste and increas-
ing efficiency, will allow us to stretch diminishing stores of nonrenewable energy
resources, gain time to deploy renewable energy technologies, avoid construction of
many new power plants, and reduce our contribution to global climate change, all
while maintaining the lifestyle we enjoy.
Power Transmission and Distribution
Our society must not only generate the electricity required for myriad uses but also
provide it to consumers. The interface between these closely linked activities has not
always been smooth. The U.S. power grid transmitting and distributing electricity to
consumers has changed little for several decades, while the number of consumers and
their power needs have changed greatly. This has induced significant systemic issues.
The current grid is increasingly a twentieth-century relic, susceptible to power outages
threatening safety and security and costing the economy billions annually.
Introducing Power Generation 429
Policy makers in 10 northeastern states (Con-
necticut, Delaware, Maine, Maryland, Massachusetts,
New Hampshire, New Jersey, New York, Rhode Island,
and Vermont) with a total population approaching 50 million
have boldly established the nation’s first cap-and-trade pro-
gram to harness the economic forces of the marketplace to
reduce carbon dioxide emitted from power plants. The aim of
these states is to spur a shift in the region’s electricity supply
toward more efficient generation and greater use of renewable
energy technology.
The group of 10 states agreed to cap the total level of CO
2
emitted annually from power plants in the region starting in
2009 and continuing through 2014. To encourage innovation, the
total CO
2
level then will be reduced 2.5% annually over the next
four years to achieve a 10% decrease by 2019. Power plant oper-
ators have agreed to purchase allowances (or credits), which
represent a permit to emit a specific amount of CO
2
, to cover
their expected CO
2
emissions. Proceeds of the sale of allowances
are intended to support efforts in the region to foster energy
efficiency and renewable energy technology. A utility that emits
less than its projected allotment can sell unneeded allowances
to utilities unable to meet their obligations. This is called a trade.
In effect, the buyer pays a charge for polluting while the seller
is rewarded for polluting less.
Costing carbon dioxide creates an economic incentive for
decreasing such emissions. Accordingly, cap-and-trade provides
a pathway for utilities to reduce carbon dioxide emitted from
their power plants cost effectively. If the cap-and-trade program
of this group of states is as successful as many expect, it could
be a model for other regions and the nation as a whole.
Reducing Carbon Dioxide Through Emissions Trading
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