Olesya Savchenko Ph.D. Candidate, Agricultural and Applied Economics Agricultural and Consumer Economics, University of IllinoisUC

Session VII: Energy Policies for a Sustainable Future Gilbert E. Metcalf, Tufts University Department of Economics “Can a Carbon Tax Get Us to a Sustainable Future” Instruments to reduce carbon & challenges of their implementation: Pigouvian Tax, Emission Reduction Targets, Revenue Targets, Political Targets. Madhu Khanna, UIUC Agricultural &Consumer Economics “Effectiveness, Costs & GHS Impacts of Low Carbon Policies” Many scattered RE policies. CPP & Low Carbon Fuel Standard may have the greatest impacts on GHG. Need for technological pathways for advanced biofuels & coordinated policy efforts. George Gross, UIUC Electrical & Computer Engineering “Integration Utility-Scale Energy Storage into Grids & Integrated Renewable Energy” Storage is critical for supply-demand balance, current storage capacity is limited but 1,555 storage development projects with 320 implemented today. Main barrier – cost.

Session VII: Energy Policies for a Sustainable Future - Takeaways Dramatic increase in RE in the U.S. and the rest of the world, but RE is still a small percentage of total consumption; large dependence on fossil fuels Many scattered sector/regional/state specific policies in the U.S. with most providing modest reduction in GHG State Renewable Portfolio Standards Clean Power Plan - most promising today Investments in advanced biofuels may lead to potentially large reductions in GHG Net cost of RE policies is lower than social cost of carbon, but negative impacts on sectors Many challenges in designing and implementing effective market-based instruments to reduce GHG Pigouvian taxes & challenges with varied estimations of social cost of carbon, Emission Reduction Targets, Revenue Targets, Political Targets. Mezzanine Approach may be effective: tax is allowed to grow, implement transitional assistance, rebates of additional revenue to HHD. Revenue neutral reform is key. Success of achieving substantial reductions in GHG depends on policy implementations & technical advances that include energy storage Need coordinated policy efforts that have a mix of carbon taxes & low carbon fuel policy, tax reform to enhance efficiency, greater investments in R&D Current electricity grid has limited storage capacity but it’s critical for supply-demand balance and provision of continues output from RE sources Many ongoing storage projects, CA to have 1,325MWs of storage by 2025