As part of its commitments to the Regional Greenhouse Gas Initiative (RGGI), the State of Maryland, USA, auctions emission permits to electric utilities, creating revenue that can be used to benefit consumers and the environment. This paper explores the CO2 emissions reductions that may be...

What are the economic consequences of increased state spending on electricity consumption efficiency? The State of Maryland faces this question in deciding how much of its CO2 allowances auction proceeds (under the Regional Greenhouse Gas Initiative) to devote to such programs. Starting at a...

We present a theoretical analysis of the impact of power market structure on the pass-through rate (PTR) of CO2 emissions trading (ET) costs on electricity prices. Market structure refers in particular to the number of firms active in the market and the intensity of oligopolistic competition as...

Tradable emissions allowance systems to reduce carbon emissions are increasingly promoted as means to mitigate climate change. This paper briefly reviews the application of such systems at the global, regional, and corporate scales. Given the recent expansion of cap-and-trade systems at the...