Download Slide 1

Policy Option Modeling:
Update
Meeting of the Illinois Climate Change Advisory Group
130 West Mason Street, Springfield, IL
April 3, 2007
Governor Rod R. Blagojevich Climate Change Advisory Group
Why model?
• Examine different policy scenarios, including
sensitivities
• Examine the cost of policy packages
• Assess interplay between policy options
Governor Rod R. Blagojevich Climate Change Advisory Group
Factors influencing choice of model approach
• Timeline
• Cost
• Capability
• Track record
Governor Rod R. Blagojevich Climate Change Advisory Group
Power sector modeling with separate
analysis for other sectors
Modeling
GSP
Power
Employment
- dispatch
- electricity prices
- new builds
Energy
Prices
New
Policies
REMI
Separate Analyses
Transport
Energy
Demand
Modeling of
Macroeconomic
impacts
- VMT
- mode switching
Industry
Commercial
Residential
Agriculture
- production
- efficiency
Governor Rod R. Blagojevich Climate Change Advisory Group
Emissions
- reductions
- cost of reductions
Next steps: Subgroup considerations
• Reference Case
– 3 critical assumptions for power sector modeling:
• Price of natural gas
• Rate of electrical load growth
• Cost and performance of new power plants
– Off the shelf assumptions from EIA and EPA available
• Determine which policies are appropriate for modeling
• Report to CCAG
Governor Rod R. Blagojevich Climate Change Advisory Group
Discussion
Questions and Comments
Governor Rod R. Blagojevich Climate Change Advisory Group