15 Nov 2011:
Regional Cap-and-Trade Scheme
Creates Economic Growth, Study Says
A regional cap-and-trade program launched in the northeastern U.S. three years ago has saved customers nearly $1.1 billion on electricity bills, helped create 16,000 jobs, and has retained more than $765 million in local economies by reducing the demand for fossil fuels, according to a new analysis
. While the future of the so-called Regional Greenhouse Gas Initiative (RGGI) remains in jeopardy — with New Jersey planning to drop out and other states also considering leaving
— the study by the Boston-based Analysis Group finds that the project has had real benefits for the ten participating states. The program requires major power plants to buy allowances at auction for each ton of carbon dioxide they emit. From mid-2008 to September, plant owners have spent about $912 million to buy those allowances, generating funds that were used to improve energy efficiency, train workers, and undertake local renewable energy projects. “We tracked the dollars spent, and RGGI generates greater economic growth in every one of the 10 states that participate in RGGI than would occur without a carbon price,” said Susan Tierney, one of the authors of the study, which will be published in The Electricity Journal
. RGGI’s participants include the six New England states, New York, New Jersey, Delaware, and Maryland.
Yale Environment 360 is
a publication of the
Yale School of Forestry
& Environmental Studies
e360 on Facebook
Donate to e360
View mobile site
Subscribe to our feed:
Yale Environment 360
articles are now available in Spanish and Portuguese on Universia
, the online educational network. Visit the site.
Business & Innovation
Policy & Politics
Pollution & Health
Science & Technology
Antarctica and the Arctic
Central & South America
A Yale Environment 360
video explores Ecuador’s threatened Yasuni Biosphere Reserve with scientists inventorying its stunning forests and wildlife. Watch the video.
is now available for mobile devices at e360.yale.edu/mobile
The Warriors of Qiugang
, a Yale Environment 360
video that chronicles the story of a Chinese village’s fight against a polluting chemical plant, was nominated for a 2011 Academy Award for Best Documentary (Short Subject).
Watch the video.
Top Image: aerial view of Iceland
. © Google & TerraMetrics.
In a Yale Environment 360
video, photographer Pete McBride documents how increasing water demands have transformed the Colorado River, the lifeblood of the arid Southwest. Watch the video.