Economic Effects of RGGI
Selling Allowances Benefits the Economy
Selling allowances ensures that their proceeds will benefit the public by funding projects to conserve energy, reduce CO2 emissions and develop clean technologies.
Both independent analyses and the RGGI experience indicate that a multi-state, market-based cap-and-invest program is the most cost-effective way to cut carbon from electricity generation.
Analysis Group Report (2011)
According to the Analysis Group (see link on right), RGGI raised over $1.6 billion for the ten participating states during its first three years of operation (2009-2011). Most of the funding from the auction proceeds was spent on energy efficiency programs, saving regional customers $1.1 billion in electricity bills, and over $174 million on natural gas and heating bills. RGGI programs also created 16,000 jobs throughout the region, and the region's payments for fossil fuels decreased by over $765 million.
Analysis Group Report (2015)
In 2015, the Analysis Group reviewed RGGI results for the second three-year operation period (2012-2014). Their report (see link on right) estimates that RGGI created $1.3 billion in net overall economic benefit for the region, generating benefits in every participating state. During this period, disbursement to states of nearly $983 million in proceeds reduced consumer energy bills by $460 million, resulted in an increase of 14,200 jobs, and saved $1.27 billion in payments to out-of-region fossil fuel providers.
RGGI Report (2015)
RGGI partners have analyzed the investment of the RGGI proceeds and the benefits of these investments throughout the region. The 2015 report (covering cumulative investments through 2013) estimates $2.9 billion in lifetime energy bill savings to more than 3.7 million households and 17,800 businesses. More than $1 billion in auction proceeds were invested in energy efficiency, clean and renewable energy, greenhouse gas abatement, and direct bill assistance. Overall, through 2013, the RGGI states report that power sector CO2 pollution was reduced by more than 40%, while their economies have grown 8 percent, adjusted for inflation.