How would wind energy be affected if the United States adopts national limits on greenhouse gas emissions?
If national legislation is enacted that puts limits on CO2 emissions, generators that produce energy from fossil fuels like coal, oil, and natural gas will have to pay a tax or buy an emission allowance for each unit of CO2 that they produce. Fuels that do not contain carbon, like wind, solar, and nuclear power, would not be subject to carbon taxes or allowance systems. These sources thus would become more cost-competitive with fossil fuel. According to the National Renewable Energy Laboratory, CO2 prices of less than $40 per ton would make electricity from onshore and offshore wind farms cost-competitive with fossil fuel as early as 2010. Click here8 for a November 2007 NREL presentation showing the impact of CO2 prices on electricity costs (Slides 12 and 13).
