Becoming proactive about environmental risks. Regulatory reform and risk management in the US electricity sector

Clinton J. Andrews, Shivani Govil

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

Future environmental requirements are an important component of investment risk for long-lived facilities such as electric power plants. Yet the industry's current regulatory compact discourages proactive environmental investments, and thus encourages suboptimal long-term compliance strategies. This paper develops an indicative estimate of the resulting inefficiency by analysing a typical US power system. It argues that market-oriented regulatory reform can encourage environmental risk management by utilities.

Original languageEnglish (US)
Pages (from-to)885-892
Number of pages8
JournalEnergy Policy
Volume23
Issue number10
DOIs
StatePublished - Oct 1995
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Energy(all)
  • Management, Monitoring, Policy and Law

Keywords

  • Electricity
  • Environment
  • Regulation

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