The Impact of New Emission rules for power plants

An article in the New York Times (March 28, 2012) describes new EPA rules that limit the CO2 emissions of power plants to 1,000 lbs per KWh. The new rules are easy to meet for new natural gas fired plants. They do not apply to old coal fired plants. But new coal fired plants will have 30 years to get their annual average emissions to the new standard. Given that complying with the new standard will involve use of expensive current technology, does the bias of the regulation in favor of the current cheap natural gas source increase the long term risk for this industry ? Should some of the addiitional costs for the new coal fired plants be subsidized by the efficiencies of the new natural gas plants to enable a energy source posrtfolio of power generating facilities ?

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About aviyer2010

Professor
This entry was posted in Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , . Bookmark the permalink.

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