We study the interplay between coal-fired electric power generator retirements, capacity markets, and environmental policies. We focus on the Reliability Pricing Model () electricity capacity market in PJM Interconnection L.L.C. (PJM). We find that acts as a channel through which environmental regulations affect the supply mix. Surprisingly, increases in prices lead to more coal retirements even when we control directly for increases in generator profitability induced by higher capacity payments. Increases in prices signal the need for expensive capital improvements and increase the probability of coal retirement.

中文翻译：

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PJM 的可靠性定价模型与燃煤发电机

我们研究燃煤发电机退役、容量市场和环境政策之间的相互作用。我们重点关注 PJM Interconnection LLC (PJM) 的可靠性定价模型 () 电力容量市场。我们发现，这是环境法规影响供应结构的一个渠道。令人惊讶的是，即使我们直接控制由更高的容量支付引起的发电机盈利能力的增加，价格上涨也会导致更多的煤炭退役。价格上涨表明需要昂贵的资本改善并增加煤炭退役的可能性。