| The problem this dissertation addresses is that separate and evolving public policy debates are currently shaping renewable markets and carbon markets without attention to how each market affects the other, yet the markets have overlapping goals with respect to reducing carbon dioxide emissions. Without a better understanding of the roles, limitations, and interactions of these two markets, the larger environmental and economic societal goals that they are meant to achieve may not be fully realized.;This research focuses on the electricity sector in the United States because federal regulations do not exist for renewable or carbon markets and thus the rules concerning the interaction between these markets have yet to be defined. The methodology for developing final recommendations consisted of an extensive review of relevant literature and analysis of case studies in which these markets overlap. The methodology also included the use of economic reasoning and analysis to aide in evaluating assumptions and projections about the effect a greenhouse gas ("GHG") cap and trade market may have on renewable energy markets. Finally, tools and concepts from the Policy Sciences tradition were used throughout the dissertation to frame and organize the discussion.;Findings are generally that while a GHG cap and trade program will reduce emissions below what would have occurred otherwise, the design of the program will determine the extent to which overall emissions reductions can take place. Furthermore, renewable energy markets could be negatively affected by a GHG cap and trade program if generation from renewables does not reduce emissions below a cap. This dissertation concludes with recommendations for policymakers, so policies defining these markets can accurately reflect intended goals including: decreasing emissions, increasing renewables, and keeping electricity costs low. |
