Markets, Externalities, and the Federal Power Act

The text asserts that because electricity generation is a primary source of greenhouse gas emissions, the Federal Energy Regulatory Commission (FERC) should use its authority as an economic regulator to address the CO2 externality. It argues that carbon pricing is not merely an environmental issue but a core market concern necessary for a functional and efficient interstate transmission and wholesale electricity market.

• Electricity generation in the United States is a primary contributor to greenhouse gas emissions, which result in severe climate change-related harms, yet the Federal Energy Regulatory Commission (FERC) has not addressed this issue.
• Addressing the CO2 externality via a carbon price is within FERC's authority because the agency's role as an economic regulator includes the responsibility to fix market failures and ensure market efficiency.
• The consideration of CO2 emissions is framed as a fundamental market concern essential for a functional market, rather than solely an environmental regulatory matter.

APA

Noll, D., & Unel (2020). Markets, Externalities, and the Federal Power Act. Institute for Policy Integrity. https://policyintegrity.org/publications/detail/environmental-law-reporter-markets-externalities-and-the-federal-power-act

Chicago

Noll, Davis, and Unel. Markets, Externalities, and the Federal Power Act. Institute for Policy Integrity, 2020. https://policyintegrity.org/publications/detail/environmental-law-reporter-markets-externalities-and-the-federal-power-act.

Wikipedia

{{cite report |last1=Noll |first1=Davis |last2=Unel |title=Markets, Externalities, and the Federal Power Act |publisher=Institute for Policy Integrity |date=7 August 2020 |url=https://policyintegrity.org/publications/detail/environmental-law-reporter-markets-externalities-and-the-federal-power-act |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{noll2020markets, author = {Noll, Davis and Unel}, title = {{Markets, Externalities, and the Federal Power Act}}, institution = {Institute for Policy Integrity}, year = {2020}, month = aug, url = {https://policyintegrity.org/publications/detail/environmental-law-reporter-markets-externalities-and-the-federal-power-act}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }