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Economy-Wide Decarbonization Requires Fixing Retail Electricity Rates

In this Research Commentary, the authors identify two issues with the current predominant retail rate design consisting of almost entirely flat volumetric charges ($/kWh). First, retail customers generally do not see the often-substantial hour-to-hour variation in the marginal cost of electricity supply, which is reflected in spot wholesale prices. Second, costs that are fixed in the short run are embedded in the volumetric charge. Absent fundamental reform of retail electricity rates, economy-wide electrification will be substantially more difficult than necessary.

How Much Are Electric Vehicles Driven?

In a new Working Paper, the authors investigate whether EVs in the US are driven less than internal combustion engine vehicles. They find that the dominant factor affecting the driving differential between EVs and ICE vehicles is range. When analysis is limited to EVs with a battery range of 100 miles or more, the differences between EVs and ICE vehicles disappear. With the range of new EVs increasing, they conclude that differences in annual driving between EVs and other vehicles will be insignificant going forward.

Temperature and Cognitive Performance

This paper estimates the effect of temperature on cognitive performance in online brain training games. As this setting represents everyday cognitive tasks, the results are indicative of how temperature affects people on a daily basis. With rising average temperatures and more frequent extreme heat, a thorough understanding of this relationship is central. It finds that, above a threshold, a 1°C increase in ambient air temperature leads to a performance reduction of 0.13%. The effect is mostly driven by individuals living in relatively cold areas, who are less adapted to hot temperatures.

Natural Gas in the U.S. Southeast Power Sector under Deep Decarbonization

The role of natural gas under deep decarbonization pathways in the electric power sector is uncertain due to a number of technological and policy factors. In this study, we analyze the impact of variable renewable energy (VRE) and storage resource costs, the availability of existing nuclear plants, upstream emissions accounting, and direct regulations on new natural gas deployment on least-cost resource mixes selected by a capacity expansion model for the American Southeast across three deep decarbonization pathways.

Carbon Abatement Costs for Hydrogen Fuels in Hard-to-Abate Transport Sectors

In a new CEEPR Working Paper, the researchers use a holistic cost model of hydrogen value chains to estimate abatement costs of replacing fossil fuels with renewable hydrogen, ammonia, or e-fuel for freight applications across trucking, shipping, and aviation. This work also analyzes how different climate policies – including carbon pricing, subsidies, and de-risking policies that influence the cost of capital – could impact the competitiveness of hydrogen-based fuels.

December 6, 2022

CEEPR is seeking applicants for a Postdoctoral Associate position

CEEPR is currently seeking applicants for a 2023 Postdoctoral Associate position focused on mining and the energy transition. The candidate would work with CEEPR Director, Professor Christopher Knittel, as well Professor Elsa Olivetti of MIT DMSE. The project will develop empirical models of supply and demand conditions around the world for minerals required for the energy transition. These models will be based on both the economic incentives created by markets and the physical constraints of mining operations. If interested, please review the job posting and application instructions here.

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November 29, 2022

A breakthrough on “loss and damage,” but also disappointment, at UN climate conference

Throughout the two weeks of the COP27, a delegation of MIT students, faculty, and staff was traveled to Sharm El-Sheikh, which included CEEPR Deputy Director Michael Mehling. In this article on MITNews, he comments on "loss and damage", a central issue in this year's discussions which refers to harms caused by climate change — either through acute catastrophes like extreme weather events or slower-moving impacts like sea level rise — to which communities and countries are unable to adapt.

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November 14, 2022

Gilbert Metcalf Joins MIT CEEPR

CEEPR is delighted to welcome Gilbert E. Metcalf as a Visiting Professor. Professor Metcalf is an economist who has made important contributions to academic scholarship and government policy making, with a focus on applied public finance and energy and environmental economics. He joins CEEPR and the MIT Sloan School of Management from Tufts University, where he has been the John DiBiaggio Professor of Citizenship and Public Service and a professor of economics. Read more about Gib here.

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The Roosevelt Project

The Roosevelt Project takes a multidisciplinary approach to examine the transitional challenges associated with progress toward a deeply decarbonized U.S. economy. The project aims to chart a path forward through the transition that minimizes worker and community dislocations and enables at-risk communities to sustain employment levels by taking advantage of the economic opportunities present for regional economic development.

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The CATE Project

The Climate Action Through Education Project aims to develop a science-based climate curriculum for U.S high school students, placing particular emphasis on reaching populations who are underserved and on countering climate denial messages. The curriculum will inform students about the causes and consequences of anthropogenic climate change, while equipping them with the knowledge and sense of agency to contribute to climate mitigation and adaptation.

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The E2e Project

Through an interdisciplinary approach to the so-called ‘energy efficiency gap’, the E2e Project seeks to evaluate and strengthen policies and incentives for improved energy efficiency. Proven research designs used to achieve these aims include randomized controlled trials (RCTs) and quasi-experimental designs, with data and customer access provided through formal partnerships with private-sector companies.

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