Cap-And-Trade Program Touted By EPA Is NOT Driving Down Emissions
A New England cap-and-trade system supported by the Environmental Protection Agency is not the driver behind falling carbon dioxide emission levels in those states, according to an analysis by the Institute for Energy Research published Tuesday.
Nine New England states are voluntarily participating in the Regional Greenhouse Gas Initiative, with the goal of reducing CO2 emissions from large power plants. The EPA is modeling a federal initiative based in part on the RGGI, and proponents of a federal model are touting the RGGI as evidence it can be successful.
But IER found the caps on CO2 were set dramatically above actual emissions levels for the first years of the RGGI program, artificially reducing the program’s costs during its trial period. Once the amount CO2 emissions begin to approach the caps, compliance costs will increase significantly and electricity prices for families and businesses will sharply rise.
The cap of allowed emissions from regulated power plants was 165 million tons in 2013, but actual CO2 emissions were only 91 million tons.