Implications of climate change mitigation and socioeconomic development on the U.S. electric power sector

Abstract

Climate change poses a global challenge, and the electric power sector, as a major greenhouse gas contributor, plays a central role in tackling and curbing its effects. Despite significant research on global and national future pathways, there is a need for further exploration into the application of Representative Concentration Pathways (RCPs) and Shared Socioeconomic Pathways (SSPs) to understand sub-national impacts on the electric power sector. This study employs the Global Change Analysis Model (GCAM-USA) to analyze how climate change mitigation and socioeconomic development interact in the U.S. electric power sector at the state level. We developed four scenarios covering different levels of decarbonization efforts and socioeconomic development. Our research findings reveal a prevailing trend towards a less carbon-intensive U.S. electric sector, propelled by an expanding presence of natural gas and renewable energies in the energy mix. Such capital turnover leads to a significant reduction of overall CO2 emissions from the electric sector, albeit at a higher lifetime cost in particularly eastern states. The mitigation efforts also lead to overall decreased water withdrawal and increased water consumption in the electric sector, however, disparities in state-level responses are observed. While population growth predominantly shapes electricity generation, unique state-level electrification potential yields indirect population-electricity dynamics. The spatially heterogeneous response suggests complex trade-offs associated with reconciling climate mitigation objectives with local electricity demand and resource constraints. In sum, this research equips policymakers and stakeholders with invaluable insights to formulate mitigation strategies that align with the objective of the U.S. electric sector, both at a national and international level, while also catering to the unique characteristics of each state.