On August 2, 2017 in Washington, DC, technical experts, policymakers, and stakeholders joined RFF for a workshop exploring the design, economic, and legal issues associated with a potential carbon adder approach. Carbon adders are used in electricity sector planning and operations to incorporate environmental costs into the total costs of electricity generation.
The workshop focused on:
- Reviewing lessons from analysis and experiences with environmental adders and electricity planning in the 1990s and identifying new analysis that would be valuable for improving our understanding of the costs and consequences of these policies.
- Assessing options for key design elements, including determining a price, providing border adjustments, and addressing distributional issues for revenues and their potential economic efficiency consequences.
- Discussing specific proposals for carbon adders in Independent Systems Operators (ISO)/Regional Transmission Organizations (RTO).
- Examining stakeholder views and exploring common ground on carbon adder proposals.