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Performance‐Based Regulation and Climate Change
Author(s) -
Lowry Mark Newton,
Makos Matt
Publication year - 2021
Publication title -
climate and energy
Language(s) - English
Resource type - Journals
eISSN - 2692-3823
pISSN - 2692-3831
DOI - 10.1002/gas.22237
Subject(s) - greenhouse gas , climate change , natural resource economics , popularity , electricity , environmental economics , climate change mitigation , energy consumption , environmental resource management , environmental science , business , economics , ecology , engineering , political science , electrical engineering , law , biology
Performance‐based regulation (PBR) has been used for several decades to incentivize and regulate US energy utilities. Its popularity has been bolstered in recent years by mounting concerns over the impact that greenhouse gas (GHG) emissions from the production and consumption of natural gas and the generation of electricity have on the world's climate. In combination with other policy measures, PBR has helped to mitigate adverse climate impacts in part by reducing energy use and moving toward cleaner energy choices. Mounting climate concerns have caused PBR to change. In this article these authors provide a useful taxonomy of PBR tools and then discuss how PBR has grown and evolved.