Reports Cited in this Article:
- Fostering Effective Energy Transition Index 2018; World Economic Forum
- The Global Future Council on Energy: Policy Recommendations; World Economic Forum
- Annual Average Electricity Price Comparison by State; Nebraska Energy Office
- 2018 U.S. Average Electricity Retail Prices; U.S. Energy Information Administration; The U.S. Chamber of Commerce
The World Economic Forum released The Fostering Effective Energy Transition Index. The Index explores a country’s ability to update its energy infrastructure. Categories of data within the index include the country’s ability for economic and development growth related to energy, household electricity prices, industrial electricity prices, fossil fuel subsidies, and value of energy exports. Other categories include environmental sustainability, energy access, and security. Within these categories, data points include electrification rate, energy intensity, and quality of electricity supply.
The State of Energy Infrastructure in countries throughout the world is on the rise. One key finding of the report found that 80% of countries improve their energy systems. In many countries, particle emission levels are declining and energy productivity is improving.
The report defines successful energy infrastructure as a triangle with three components: security and access, environmental sustainability, and economic development and growth.
A list of policy recommendations, published in March 2018, by the World Economic Forum looks at global investment in clean energy and the future of energy infrastructure.
The report advocates for policies such as carbon pricing, smart subsidies, R&D and innovation for energy infrastructure, and reevaluating energy market design.
Carbon pricing is seen as an alternative approach to the Green New Deal. Carbon pricing is when an economy imposes a tax on CO2 emissions. The tax creates a market price for CO2 emissions. The taxable entity has the opportunity to trade emissions in a marketplace to lower
One example of carbon pricing is the Regional Greenhouse Gas Initiative Cap-n-Trade system that is operating across the Northeast part of the United States. A second exmple is Sweden who has been using a carbon tax since the 1990’s. The report states that Sweden has lowered CO2 emission by 25% between 1991 and 2013, while GDP increased 60%.
Effectively, Sweden demonstrated that carbon taxes lower CO2 emission without impacting economic growth.
Annual Average Electricity Price by State
In the United States a number of research agencies publish the annual average price per kilowatt hour of electricity. In 2017, the NEOl provides a list of 50 States and their annual electricity price comparison.
The national average is 10.54 cents per Kilowatt Hour. The least expensive States include:
- Louisiana: 7.75
- Washington: 7.94
- Oklahoma: 8.12
- Arkansas: 8.18
- Wyoming: 8.29
The most expensive States include
- New Hampshire: 16.16
- Rhode Island: 16.44
- Connecticut: 17.62
- Alaska: 19.52
- Hawaii: 26.27
The U.S. Chamber of Commerce recently published a map of United States Electricity Retail Prices to identify regional pricing trends. The Northeast and California have significantly higher retail prices than American’s Heartland and South.