Uncapping Solar Energy’s
Promise
To maximize renewable energy’s potential to reduce emissions beneath a carbon cap,
policymakers must design renewables into the cap-and-trade plan.
By GHITA L. CARROLL, Ph.D., and
PAUL KOMOR, Ph.D.
Ghita L. Carroll, Ph.D., is the sustainability
coordinator for the Boulder Valley School District and Paul Komor, Ph.D., is a lecturer in the
environmental studies program at the University
of Colorado, Boulder. This article is based on the
authors’ research, detailed in Carroll’s dissertation, “Interaction Between Renewable Energy
Markets and Carbon Markets: Optimal Policies
to Meet Societal Goals.” Contact Carroll at ghita.
carroll@bvsd.org.
In the long term, providing allowances for
renewables may be the best way to reduce
emissions, because investing in these
technologies could bring advances that
make them more viable.
RANDY MON TOYA
U.S. renewable energy markets are
growing rapidly. Nearly half of the
states have implemented renewable
portfolio standards (RPSs), requiring large
utilities to provide a certain percentage of electricity from renewable sources of energy by a
given date. In addition, the voluntary market
— electricity users voluntarily paying more for
electricity produced from renewables — grew
almost 40 percent over the previous year in
2005. It now represents 22 percent of renew-
TOM TOMCZYK/ ISTOCKPHTO.COM
able energy capacity built since 1997. (See Bird
and Swezey, 2006, “Green Power Marketing in
the United States: A Status Report.”)
What could have the greatest impact on
these growing markets, however, is carbon regulation. Policymakers nationwide are developing cap-and-trade programs for greenhouse gas
(GHG) emissions, and President-elect Obama
has outlined plans for a federal program. Initial
efforts include the Regional Greenhouse Gas
Initiative, an active program covering several
