Impacts of Environmental Externalities Upon Relative Costs of Renewable Technology & Impact of The Deployment of Renewable Generation On The Market Price of Electricity

This memorandum from the Center for Energy, Economic and Environmental Policy to the New Jersey Clean Energy Council (CEC) attempts to accomplish several goals. First, it discusses some of the important issues that the CEC is confronting in monetizing externalities that are relevant to its decision- making. Second, it employs a simple approach under different environmental externality assumptions to illustrate the comparison of the social costs of renewable technologies. The purpose here is to illustrate these points, not to provide New Jersey specific externality adders that should be used in policymaking. Third, it discusses the issue of lower electricity prices due to policies that spur investment in renewables.Discussion Paper Prepared For The New Jersey Clean Energy CouncilPurpose: To present the New Jersey Clean Energy Council with information about issues involving environmental externalities and economic and environmental policies