Emissions from energy use
Market Trends
In the AEO2011 Reference case, the cost of capital for investments in GHG-intensive technologies—including conventional coal-fired power plants, CTL plants, CBTL plants, and integrated coal gasification and combined cycle (IGCC) plants without carbon capture and storage (CCS)—is increased by 3 percentage points to reflect the behavior of utilities, other energy companies, and regulators concerning the possible enactment of GHG legislation which could mandate that owners purchase allowances, invest in CCS, or invest in other projects to offset their emissions in the future. A No GHG Concern case, in which the additional 3 percentage points for GHG-intensive technologies is removed, is used to evaluate the impact on energy investments.
