Working Paper: NBER ID: w22525
Authors: Geoffrey Heal
Abstract: I investigate the cost and feasibility of reducing US GHG emissions by 80% from 2005 levels by 2050. The US has stated in its Paris COP 21 submission that this is its aspiration. I suggest that this goal can be reached at a cost in the range of $37 to $135 bn/year. I assume that the goal is to be reached by extensive use of solar PV and wind energy (66% of generating capacity), in which case the cost of energy storage plays a key role in the overall cost. I conclude tentatively that more limited use of renewables (less than 50%) together with increased use of nuclear power might be less costly.
Keywords: greenhouse gas reductions; Paris Agreement; renewable energy; energy storage; nuclear power
JEL Codes: Q40; Q42; Q54
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| reducing US greenhouse gas emissions by 80% by 2050 (Q54) | feasibility contingent on significant investments and technological advancements (O22) |
| improvements in energy storage technology and massive capital investment (E22) | reduction in carbon emissions by 80% from 2005 levels by 2050 (Q47) |
| energy storage costs and capital required for new energy generating capacity (P18) | overall emissions reduction (Q52) |
| transition from fossil fuels to renewable energy sources (solar and wind) (Q42) | significant reduction in greenhouse gas emissions (Q54) |
| extent of renewable use (Q20) | overall cost of emissions reduction (Q52) |