Fig. 6: The effect of the local tax on generator usage for each zone of Fig. 5.

Generators are binned based on their local tax penalty (x-axis), and the y-axis shows the change in each generator group’s average generation with local tax relative to the base scenario. The numbers on the bottom left corner of each panel show the corresponding zone’s daily average electricity demand and the percentage of fossil fuel capacity usage. The local tax shifts the power generation from more harmful generators (higher $/MWh damages) to less harmful generators. However, in panel (f) almost 99% of generation capacity is exhausted, and the policy intervention is not able to alter operations relative to the base case.