Working Paper

Congestion in the Electricity Transmission System Redistributes Pollution across Long Distances

Erik P. Johnson, Juan Moreno-Cruz
CESifo, Munich, 2020

CESifo Working Paper No. 8483

Electricity transmission redistributes environmental impacts across space. We exploit episodes of high electricity transmission system congestion to explore changes in ambient concentrations of air pollutants in the eastern United States. Reducing electricity system congestion decreases ozone and PM2.5 concentrations in New England and New York and increases them in the western portions of the Pennsylvania-New Jersey-Maryland electricity market and much of the Midwestern states. We quantify the health impacts of changes in environmental pollution induced by a reduction in congestion and find overall health losses in central states such as Illinois, Indiana, and Ohio and health gains in Atlantic.

CESifo Category
Resources and Environment
Energy and Climate Economics
Keywords: electricity congestion, air quality, electricity transmission, health impacts
JEL Classification: Q510, Q520, Q530