LCCA: Improved Cost-Assessment Methodology for a Net-Zero Emissions World
energypolicy.columbia.edu
energypolicy.columbia.edu
Consider an example. LCCA value for rooftop solar varies hugely across the U.S. If the installation helps displace a low-efficiency gas turbine in California, then LCCA is only $60 per metric ton of CO2 avoided. If it replaces a high-efficiency gas plant in New Jersey, then LCCA is $320 per metric ton instead. Following this logic, each dollar provided in federal tax credits to incentivize rooftop solar—which is currently given out uniformly across the U.S.—goes much further in cutting carbon in California than in New Jersey. In effect, if LCCA were the only metric and cutting greenhouse gases the main goal, then perhaps California should get more federal support for rooftop solar than New Jersey.
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Still, LCCA provides insight into what can bring the greatest amount of carbon reduction for the same price. It gives us a framework to make a more apples-to-apples comparison of policy or portfolio options to decide which will be the most effective in cutting greenhouses gases, and thus which will have the biggest impact in addressing climate change.