The Study
While numerous, valuable research studies on alternative fuels, new technologies, and future energy scenarios have been conducted, the RFF/NEPI project goes beyond what others have done to present a focused, consistent ranking and analysis across specific policy options. Three features of the study make it unique.
1. The study uses consistent quantitative metrics to rank energy options. Within an energy-economic modeling framework, a range of diverse policies and policy combinations will be evaluated on the metrics of:
- cost per barrel of imported oil reduced
- cost per ton of GHG emissions reduced
- scale of oil and greenhouse gas reduction
The quantitative nature of the study and the consistency of approach will provide hard facts about policies and allow “apples to apples” comparisons rarely available in current studies. EIA’s National Energy Modeling System (NEMS), a well-known and highly detailed energy model, will form the basis for the analysis.
2. The study is focused on policy. Although organized by fuels, technologies, and sectors, the analyses are directed to specific policy instruments. To fully evaluate options for improving energy security and mitigating climate change, it is essential to look beyond factual engineering estimates, chemical composition, financial costs, or availability of particular fuels and technologies, and consider the other social and environmental costs of specific policy changes. This evaluation of policies will provide decision makers with a clear basis for how to move forward.
3. The study is comprehensive. Many existing studies address a single or limited number of subjects or strategies in relation to either climate change or energy security. This project will analyze and rank the broadest possible menu of policies as well as combinations of policies. These strategies will emphasize conservation, alternative fuel and energy production, conventional domestic hydrocarbon resources, technological breakthroughs, and an expansion of known solutions. This analysis will reveal the mutual advantages of some policies as well as the conflicting consequences of others. It is important to note that this study is one of the few to evaluate policy combinations.
The first phase is focused on the following subjects:
- Transportation Policies (CAFÉ standards, fuel tax, feebates, hybrid gasoline/diesel, all-electric, oil tax, CNG for auto and heavy trucks, unconventional liquid fuels)
- Cap and Trade/Carbon Pricing Policies (cap and trade, carbon tax)
- Electricity Generation Policies (nuclear, renewable energy technologies, natural gas)
- Resource Enhancements (increased access to natural gas and oil)
- Conservation Policies (geothermal heat pumps, improved energy efficiency in residential and commercial buildings)