Promoting Low-Carbon Electricity Production

The electric power industry is the single largest emitter of carbon dioxide in the United States, accounting for 40% of CO₂ emissions in 2006, up from 36% in 1990 and 25% in 1970. The electricity sector is therefore a natural target as federal and state governments begin to get serious about managing CO₂ emissions. Moreover, because the marginal cost of reducing emissions in the electricity sector appears to be lower than in other sectors such as transportation, the electricity sector may deliver the largest proportional carbon reductions under an economically efficient climate policy.