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Research: Renewable Energy and Carbon Management Strategies for the United States: International Energy Market and Global Climate Implications

The United States is attempting to forge a more effective U.S. energy and climate response and work to achieve a greater consensus of approach both at home and abroad. A national Renewable Portfolio Standard that regulates the amount of renewable energy that must be used in the United States is now under debate as well as other policies to promote alternative energy use in the United States. The U.S. is also pursuing a major initiative to propel biofuels into its gasoline system but distribution and logistical problems remain.

This study examined different policy pathways open to the United States to increase the share of renewable energy in its energy mix and the impact each would have on the competition of fuels in North America. Using scenario analysis, the Baker Institute analyzed the impact of alternative energy policies and deployment on the competition of fuels in the U.S. market and the impact of this new competition on long term U.S. oil and natural gas demand trends, with implications for global markets. U.S. oil and natural gas demand remain a highly influential variable in general supply, demand and pricing trends for international markets for oil and LNG. Policy stimulated changes in U.S. demand will have significant impact on global energy market trends. Thus, the study also analyzed geopolitical trends likely to emerge as a result of the United States’ changing climate and alternative energy policies and the impact of such policy on America’s foreign policy, global climate stance and trade policy.


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This study was made possible through the generous support of the Institute of Energy Economics, Japan

and the Baker Institute Energy Forum Sponsors.