Inertia in the North American Electricity Industry: Can the Kyoto Protocol Objectives Be Realistically Met?

Abstract

If they are to be attained, the objectives set in the Kyoto Protocol will impose fundamental changes on the structure of North America's economy. This text highlights the extent of the Kyoto challenge by clearly describing the historical inertia in terms of total market shares for different production technologies of the North American electricity industry. It also compares two potential scenarios of the industry changes needed to attain the Kyoto objectives. The results obtained suggest that it will be virtually impossible to reach the Kyoto objectives within the electricity industry.Kyoto Protocol, Electricity Industry, Technological Change