The Economic Impacts of the Regional Greenhouse Gas Initiative on Ten Northeast and Mid-Atlantic States

The Economic Impacts of the Regional Greenhouse Gas Initiative on Ten Northeast and Mid-Atlantic States

In its first three years, the Regional Greenhouse Gas Initiative — the first U.S. market-based program to reduce carbon dioxide emissions from power plants — has helped reduce emissions, lower electricity bills, and boost sales of engineering services, energy-efficiency equipment, solar panels and their installation, and other goods and services, a report from the Analysis Group finds. According to The Economic Impacts of the Regional Greenhouse Gas Initiative on Ten Northeast and Mid-Atlantic States (54 pages, PDF), the ten participating Northeastern and Mid-Atlantic states have disbursed nearly $912 million in auction proceeds back into the economy through energy efficiency measures, community-based renewable power projects, assistance to low-income customers, education and job training programs, and contributions to general funds. Funded by the Merck Family Fund, Chorus, Inc., and the Barr and Henry P. Kendall foundations, the report finds that investing auction proceeds in energy efficiency lowers not only regional electrical demand, power prices, and electricity bills for consumers but also energy costs overall, which leads to broader macroeconomic benefits.