EPA greenhouse gas emission limits on new power plants may not be cost minimizing

Environmental Economics

s proposal remain confidential, experts predict that it will include separate standards for carbon dioxide emissions from plants fired by natural gas and by coal. Plants using comparatively clean gas would be permitted to emit perhaps 1,000 pounds of carbon dioxide per megawatt-hour, a ceiling within easy reach using modern technologies. To see this imagine if the last unit of abatement for a new coal plant is higher, say $80, than for a new natural gas plant, which is $50.