Renewables and air quality

Abstract

The US heavy reliance on fossil fuels is a central obstacle to improving air quality and preventing catastrophic climate change. To solve this problem will require a combination of financial incentives and market rules that strongly encourage development of renewable energy resources to meet electric power demand. One promising policy option is to allow renewable energy resources to directly participate in air pollution emission trading mechanisms. Currently, the clean air benefits of renewable energy generally go unrecognized by regulators, under-appreciated by consumers and uncompensated by markets. Renewable energy is a key clean air alternative to conventional electricity generation, and the development of renewables could be stimulated by changes to the Clean Air Act's emissions trading programs. As Congress revisits clean air issues over the next several years, renewable energy representatives could push for statutory changes that reward the renewable energy industry for the air quality benefits it provides. By also becoming involved in key US Environmental Protection Agency (EPA) and state rule-making cases, the renewables industry could influence the structure of emissions trading programs and strengthen one of the most persuasive arguments for wind, solar and biomass energy development.