"If PA puts a cap on carbon emissions, what happens to electricity prices?"
View on Pittsburgh Post-Gazette websiteRFF Issue Brief " Options for Issuing Emissions Allowances in a Pennsylvania Carbon Pricing Policy" by Dallas Burtraw, Maya Domeshek, Anthony Paul, and Paul Picciano was cited in Pittsburgh Post-Gazette article on the price of power in Pennsylvania. Dallas Burtraw, RFF's Darius Gaskins Senior Fellow and co-author of the study, was also quoted on his research. Listed below is the full quote:
“In the weeks since Gov. Tom Wolf announced that he is taking steps to enroll Pennsylvania in a regional collaboration to cut carbon dioxide emissions from power plants, a key question arose: How much will this raise electricity prices?
An analysis this week by economic research nonprofit Resources for the Future evaluated 15 scenarios for how Pennsylvania could set up a carbon-price program with the Regional Greenhouse Gas Initiative and distribute revenue from auctioning off carbon credits.
It found that, at worst — if all of the carbon revenues from Pennsylvania’s program are sent to the state’s general fund — total electricity spending in Pennsylvania would rise 0.4% in 2026 compared to business as usual.
At best — if all of the proceeds are spent on energy efficiency programs and direct payment relief for electricity consumers — electricity spending would actually fall 1.8%. ‘The cost of achieving emissions reductions in Pennsylvania is so low,’ said Dallas Burtraw, the report’s lead author.”
Read the full article here.
