2012
Snead, Mark C.
Electricity Production Under Carbon Constraints: Implications for the Tenth District Journal Article
In: FRBKC Economic Review, pp. 97-127, 2012.
Abstract | Links | BibTeX | Tags: Electricity, Energy
@article{nokey,
title = {Electricity Production Under Carbon Constraints: Implications for the Tenth District},
author = {Mark C. Snead},
url = {https://www.kansascityfed.org/Economic%20Review/documents/1628/Electricity_Production_Under_Carbon_Constraints_Implications_for_the_Tenth_DistrictB4B.pdf},
year = {2012},
date = {2012-03-30},
journal = {FRBKC Economic Review},
pages = {97-127},
abstract = {Coal is the dominant fuel used to produce electricity in the United States, accounting for almost half of production. Although coal is cheap and abundant domestically, the burning of coal releases greenhouse gases (GHG) and particulates. In response, many states have increased the use of cleaner alternative fuels, primarily natural gas and renewable energy. However, roughly half of the states still rely heavily on coal to generate electricity.
In the Federal Reserve’s Tenth District, six of seven states are coal-dependent, generating two-thirds or more of their electricity from coal. Coal-intensive states face regulatory risk from increased restrictions on GHG emissions. Forecasts suggest GHG restrictions would rapidly accelerate the use of cleaner fuels, but would require extensive and expensive changes in the mix of generation capacity in many states.
This article examines the potential impact of national GHG restrictions on Tenth District energy producers and consumers. The findings suggest that GHG restrictions would lead to a structural change in the mix of fuels used to generate electricity in most District states, as well as increase electricity costs to District consumers. District natural gas producers would benefit from increased gas consumption, but not as much as emerging natural gas producers in other areas of the country. District coal producers, particularly in Wyoming, would face sharply reduced domestic demand for coal.},
keywords = {Electricity, Energy},
pubstate = {published},
tppubtype = {article}
}
Coal is the dominant fuel used to produce electricity in the United States, accounting for almost half of production. Although coal is cheap and abundant domestically, the burning of coal releases greenhouse gases (GHG) and particulates. In response, many states have increased the use of cleaner alternative fuels, primarily natural gas and renewable energy. However, roughly half of the states still rely heavily on coal to generate electricity.
In the Federal Reserve’s Tenth District, six of seven states are coal-dependent, generating two-thirds or more of their electricity from coal. Coal-intensive states face regulatory risk from increased restrictions on GHG emissions. Forecasts suggest GHG restrictions would rapidly accelerate the use of cleaner fuels, but would require extensive and expensive changes in the mix of generation capacity in many states.
This article examines the potential impact of national GHG restrictions on Tenth District energy producers and consumers. The findings suggest that GHG restrictions would lead to a structural change in the mix of fuels used to generate electricity in most District states, as well as increase electricity costs to District consumers. District natural gas producers would benefit from increased gas consumption, but not as much as emerging natural gas producers in other areas of the country. District coal producers, particularly in Wyoming, would face sharply reduced domestic demand for coal.
In the Federal Reserve’s Tenth District, six of seven states are coal-dependent, generating two-thirds or more of their electricity from coal. Coal-intensive states face regulatory risk from increased restrictions on GHG emissions. Forecasts suggest GHG restrictions would rapidly accelerate the use of cleaner fuels, but would require extensive and expensive changes in the mix of generation capacity in many states.
This article examines the potential impact of national GHG restrictions on Tenth District energy producers and consumers. The findings suggest that GHG restrictions would lead to a structural change in the mix of fuels used to generate electricity in most District states, as well as increase electricity costs to District consumers. District natural gas producers would benefit from increased gas consumption, but not as much as emerging natural gas producers in other areas of the country. District coal producers, particularly in Wyoming, would face sharply reduced domestic demand for coal.
2010
Snead, Mark C.; Jones, Amy A.
Are U.S. States Equally Prepared for a Carbon-Constrained World? Journal Article
In: FRBKC Economic Review, pp. 67-96, 2010.
Abstract | Links | BibTeX | Tags: Carbon Emissions, Electricity, Energy
@article{nokey,
title = {Are U.S. States Equally Prepared for a Carbon-Constrained World?},
author = {Mark C. Snead and Amy A. Jones},
url = {https://www.kansascityfed.org/Economic%20Review/documents/943/2010-Are%20U.S.%20States%20Equally%20Prepared%20for%20a%20Carbon-Constrained%20World%3f.pdf},
year = {2010},
date = {2010-10-01},
urldate = {2010-10-01},
journal = {FRBKC Economic Review},
pages = {67-96},
abstract = {Climate concerns linked to greenhouse gas emissions, particularly carbon dioxide (CO2), have taken center stage in the national energy policy debate. Domestic energy use and carbon emissions continue to rise, and forecasts suggest further increases under the existing regulatory structure. However, heightened international and domestic pressure to reduce U.S. carbon emissions suggests that additional changes to the regulatory framework are probable in coming years.
Reducing U.S. carbon emissions will likely require a comprehensive national framework that will alter the pattern of energy use and production in all 50 states. At issue for state-level policymakers is that carbon restrictions are unlikely to affect the states equally. Energy use and emission patterns vary widely across states, and there is no accepted framework for allocating shares of a national carbon reduction goal. As a result, states that emit the most carbon or have the most energy- and carbon-intensive economies may shoulder the greatest burden.
This article evaluates the current energy posture of the states and thus how prepared they are to cope with ongoing trends in energy use, especially restrictions on carbon emissions. The findings suggest thatthe New England, Mid-Atlantic, and West Coast states are generally best prepared. These states have the least energy-intensive economies and use fuel mixes with low average carbon intensity; hence, they already release proportionately less CO2. The states expected to be hardest hit by carbon constraints are the traditional energy-producing and agricultural states. These states have energy-intensive economies, by both domestic and international standards, and will face a considerable challenge in altering their energy use and emissions patterns.},
keywords = {Carbon Emissions, Electricity, Energy},
pubstate = {published},
tppubtype = {article}
}
Climate concerns linked to greenhouse gas emissions, particularly carbon dioxide (CO2), have taken center stage in the national energy policy debate. Domestic energy use and carbon emissions continue to rise, and forecasts suggest further increases under the existing regulatory structure. However, heightened international and domestic pressure to reduce U.S. carbon emissions suggests that additional changes to the regulatory framework are probable in coming years.
Reducing U.S. carbon emissions will likely require a comprehensive national framework that will alter the pattern of energy use and production in all 50 states. At issue for state-level policymakers is that carbon restrictions are unlikely to affect the states equally. Energy use and emission patterns vary widely across states, and there is no accepted framework for allocating shares of a national carbon reduction goal. As a result, states that emit the most carbon or have the most energy- and carbon-intensive economies may shoulder the greatest burden.
This article evaluates the current energy posture of the states and thus how prepared they are to cope with ongoing trends in energy use, especially restrictions on carbon emissions. The findings suggest thatthe New England, Mid-Atlantic, and West Coast states are generally best prepared. These states have the least energy-intensive economies and use fuel mixes with low average carbon intensity; hence, they already release proportionately less CO2. The states expected to be hardest hit by carbon constraints are the traditional energy-producing and agricultural states. These states have energy-intensive economies, by both domestic and international standards, and will face a considerable challenge in altering their energy use and emissions patterns.
Reducing U.S. carbon emissions will likely require a comprehensive national framework that will alter the pattern of energy use and production in all 50 states. At issue for state-level policymakers is that carbon restrictions are unlikely to affect the states equally. Energy use and emission patterns vary widely across states, and there is no accepted framework for allocating shares of a national carbon reduction goal. As a result, states that emit the most carbon or have the most energy- and carbon-intensive economies may shoulder the greatest burden.
This article evaluates the current energy posture of the states and thus how prepared they are to cope with ongoing trends in energy use, especially restrictions on carbon emissions. The findings suggest thatthe New England, Mid-Atlantic, and West Coast states are generally best prepared. These states have the least energy-intensive economies and use fuel mixes with low average carbon intensity; hence, they already release proportionately less CO2. The states expected to be hardest hit by carbon constraints are the traditional energy-producing and agricultural states. These states have energy-intensive economies, by both domestic and international standards, and will face a considerable challenge in altering their energy use and emissions patterns.
2009
Snead, Mark C.
Are the Energy States Still Energy States? Journal Article
In: FRBKC Economic Review, pp. 43-68, 2009.
Abstract | Links | BibTeX | Tags: Energy, Oil and Gas
@article{nokey,
title = {Are the Energy States Still Energy States?},
author = {Mark C. Snead},
url = {https://www.kansascityfed.org/Economic%20Review/documents/945/2009-Are%20the%20Energy%20States%20Still%20Energy%20States%3F.pdf},
year = {2009},
date = {2009-10-01},
urldate = {2009-10-01},
journal = {FRBKC Economic Review},
pages = {43-68},
abstract = {Traditional energy states managed to avoid the early stages of the recent national recession, buoyed by record-high crude oil and natural gas prices. Both production and exploration for crude oil and natural gas expanded rapidly in response to the spike in energy prices, propelling strong job and income gains in the energy states.
But the strong performance of the energy states through the early stages of the recession subsequently reversed itself under the weight of collapsing energy prices. These states began to underperform non-energy states by the second quarter of 2009. These gyrations in economic activity are reminiscent of the volatility experienced during the 1970s and early 1980s, suggesting that the energy cycle is alive and well in the energy states.
This article examines the economic performance of the energy states in the recent energy price spike and recessionary cycle. The way the economies of the energy states respond to changes in energy prices remains important to businesses, households, and policymakers within these states.},
keywords = {Energy, Oil and Gas},
pubstate = {published},
tppubtype = {article}
}
Traditional energy states managed to avoid the early stages of the recent national recession, buoyed by record-high crude oil and natural gas prices. Both production and exploration for crude oil and natural gas expanded rapidly in response to the spike in energy prices, propelling strong job and income gains in the energy states.
But the strong performance of the energy states through the early stages of the recession subsequently reversed itself under the weight of collapsing energy prices. These states began to underperform non-energy states by the second quarter of 2009. These gyrations in economic activity are reminiscent of the volatility experienced during the 1970s and early 1980s, suggesting that the energy cycle is alive and well in the energy states.
This article examines the economic performance of the energy states in the recent energy price spike and recessionary cycle. The way the economies of the energy states respond to changes in energy prices remains important to businesses, households, and policymakers within these states.
But the strong performance of the energy states through the early stages of the recession subsequently reversed itself under the weight of collapsing energy prices. These states began to underperform non-energy states by the second quarter of 2009. These gyrations in economic activity are reminiscent of the volatility experienced during the 1970s and early 1980s, suggesting that the energy cycle is alive and well in the energy states.
This article examines the economic performance of the energy states in the recent energy price spike and recessionary cycle. The way the economies of the energy states respond to changes in energy prices remains important to businesses, households, and policymakers within these states.