Energy Efficiency’s Role in a Carbon Cap-and-Trade System: Modeling Results from the Regional Greenhouse Gas Initiative

The American Council for an Energy-Efficient Economy created a report to summarize the regional effects of increased energy efficiency investments in a carbon cap-and-trade policy framework. This, at the time, was the most specific study conducted on energy efficiency’s impact on factors such as allowance prices, energy prices, and economic growth. This report focused on the Regional Greenhouse Gas Initiative (RGGI), a nine-state effort, to develop a regional carbon cap-and-trade system between Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New Jersey, and Delaware. The REMI model was utilized to conduct extensive modeling to assess RGGI’s potential impacts.

The REMI input-output model displayed the positive impacts of increased efficiency investment. An analysis of energy savings from other modeling results showed that 2021 household electricity bills would be an average of $109 less than the reference case demonstrating consumer energy savings. Economic output based on doubling efficiency demonstrated an increased regional economic growth from almost no effect to 0.6% in 2021 compared to the reference case.

 

RGGI Energy Efficiency and Cap and Trade [Full PDF]

Northern Extension of Interstate 49: Facilitating International & Domestic Commerce & Tourism

A grant was requested by the Louisiana Department of Transportation and Development to extend the northern part of Interstate 49 in Louisiana from Interstate 220 in Shreveport to the Arkansas state line. The distance would be an addition of 36 miles which would span a portion of the Shreveport Metropolitan Area and the rural area of Caddo Parish. The REMI TranSight model was utilized to analyze the long-term benefits of the extension of I-49 from Shreveport to Kansas City. The model estimated the impacts of the initial construction and its long-term impacts on the economy. The inputs were travel distance, time, and safety benefits which demonstrated an increase in 5,687 jobs, $569 million in gross state product, and $1.26 billion in personal income by 2039. Additionally, livability, sustainability, and safety were also addressed. This study was a comprehensive exploration of the positive effects that this extension would accomplish.

 

Northern Extension of Interstate 49-Facilitating International + Domestic Commerce + Tourism [Full PDF]

West O’Hare Corridor Economic Development Study

The O’Hare International Airport is a vital element of transportation, connecting the Chicago region with the rest of the world. Despite its already massive size, the O’Hare Modernization Program (OMP) recognized its need for continued growth and evolution to ensure that it can continue operating with greater congestion levels, without delay. This is in response to projections indicating a 42% increase in flight operations to nearly 1.4 million by 2030.

OMP utilized the REMI model to understand and measure the economic impact of ground transportation improvements based on two future scenarios. The first scenario accessed improvements in the ground transportation of Western Access, Western Bypass, Irving Park Road, other roadway projects, and airport expansion and visitor spending impacts. The second scenario entails modest capital improvements, which did not include runway reconfigurations or new terminal additions. The model measures the economic contributions attributable to the OMP and other related ground transportation improvements.

 

West O’Hare Corridor Economic Development Study [Full PDG]

Impacts of Transportation Infrastructure on the Economy of North Dakota

The Upper Great Plains Transportation Institute conducted this report for the North Dakota Legislative Council to demonstrate improvements to the state’s transportation infrastructure that would better support the business climate and the economic development of the state. The study focuses on the expansion of the sale of goods to markets outside the state through strengthening the transportation infrastructure within the state. The REMI TranSight model was used in conjunction with another software to provide a broad scope of the impacts of North Dakota’s transportation system.

The REMI analysis examined the effects of reducing the budget. The areas of interest were improvement cost, maintenance cost, vehicle-operating cost, safety cost, emission cost, travel time, and hours of delay, ultimately resulting in a reduction in the gross regional product (GRP).

Additionally, the REMI TranSight model evaluated the costs and benefits of the Rail Freight Service on the overall economy. When grain is transshipped from the branch line to the mainline, the model depicted an increase in agricultural transportation and grain handling cost to be roughly $30.9 million whereas if farmers utilize the mainline, directly, the economic impact to the state is estimated at $20.2 million.

Upper Great Plains Transportation Institute – Impacts of Transportation Infrastructure on the Economy of North Dakota [Full PDF]

 

 

Economic Impacts of Retiring & Replacing the San Juan Generating Station in 2022

The Public Service Company of New Mexico (PNM) has entrusted REMI to analyze the economic and demographic impacts of retiring the coal-fired San Juan Generating Station (SJGS), located in San Juan County, New Mexico. The study examines the net economic changes that would be the result of the anticipated closure of SJGS, particularly modeling the impact on consumers, the economy in PNM’s service territory, and the potential impact on jobs and income. The study looks at the economic impacts on PNM’s service territory rather than on San Juan County.

PNM plans to replace the lost electricity with natural gas, solar power, and batteries, estimating that these changes in infrastructure would lower the electricity prices for customers in their service territory. To best assess the impacts of the retiring and replacing process, REMI utilized a 160-sector PI+ model of New Mexico that breaks out PNM’s service territory from the rest of the state. The study considers five categories of direct impacts: the SJGS retirement; the investment in operating and replacing generating assets; PNM’s electricity price change; Energy Transition Act (ETA) assistance funds for San Juan County; and changes in mine reclamation and plant decommission spending at the San Juan site.

 

Economic Impacts of Retiring & Replacing the San Juan Generating Station in 2022 [Full PDF]