Working Paper: NBER ID: w26084
Authors: Geoffrey Heal
Abstract: I calculate the cost of replacing all power stations in the U.S. using coal and gas by wind and solar power stations by 2050, leaving electric power generation in the U.S. carbon free. Allowing for the savings in the cost of fossil fuel arising from the replacement of fossil fuel plants this is roughly $55 billion annually. Allowing in addition for the fact that most fossil plants in the U.S. are already old and would have to be replaced before 2050 even if we were not to go fossil free, this annual cost is reduced to $23 billion.
Keywords: No keywords provided
JEL Codes: Q0; Q01; Q50
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| replacement of fossil fuels (Q42) | reductions in fossil fuel costs (Q47) |
| reductions in fossil fuel costs (Q47) | lower total cost for electricity generation (L94) |
| replacement of fossil fuels (Q42) | lower total cost for electricity generation (L94) |
| transitioning to renewable energy (Q42) | overall electricity costs (L94) |
| necessity of replacing aging fossil fuel plants (L94) | total cost could rise (R48) |
| transitioning to a carbon-free electricity system (L94) | significant cost savings from reduced fossil fuel usage (Q41) |