The Impact of Public Policy: Understanding Business Choices About Climate Change

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The Impact of Public PolicyUnderstanding
Business Choices About Climate Change

• David Gard
• Michigan Environmental Council

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Reference Inventory of U.S. Greenhouse Gas
Emissions and Sinks 1990-2005, USEPA
430-R-07-002
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Sources of Michigans Electricity
Source U.S. Energy Information Administration,
2004.
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COAL PLANT EMISSIONS

• Carbon Dioxide (CO2)
• Sulfur Dioxide (SO2)
• Nitrogen Oxides (NOx)
• Mercury

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20 BILLION PER YEAR

• 100 of our coal
• 100 of our uranium
• 96 of our motor fuels
• 75 of our natural gas

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Renewable Energy Cost Trends
Levelized cents/kWh in constant 20001
4030 20 10 0
100 80 60 40 20 0
PV
Wind
COE cents/kWh
1980 1990 2000 2010 2020
1980 1990 2000 2010 2020
70 60 50 40 30 20 100
1512 9 6 30
10 8 6 4 20
Solar thermal
Biomass
Geothermal
COE cents/kWh
1980 1990 2000 2010 2020
1980 1990 2000 2010 2020
1980 1990 2000 2010 2020
Source NREL Energy Analysis Office
(www.nrel.gov/analysis/docs/cost_curves_2002.ppt)
1These graphs are reflections of historical cost
trends NOT precise annual historical
data. Updated October 2002
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Wind Turbine Components
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Source npower
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Is the market price accurate?

• EU Allowance closing price
• for April 8, 2008
• 23.53 (about 37)

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How do utilities make money?

• Profits Revenue Costs

Unit price x Sales Volume
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State Clean Energy Policies
Source Union of Concerned Scientists, 2007
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Climate Bills in U.S. Congress