MJB&A Provides Technical Advice on RGGI Report

Brian Jones, MJB&A Senior Vice President, served on the Technical Advisory Group for the Analysis Group report, The Economic Impacts of the Regional Greenhouse Gas Initiative on Ten Northeast and Mid-Atlantic States: Review of the Use of RGGI Auction Proceeds from the First Three-Year Compliance Period, released on November 15, 2011. The report examines the flow of dollars associated with the purchase of CO₂ emissions allowances in 13 RGGI auctions that took place from Q3 2008 through Q3 2011. It looks at the impact of these allowances on electricity prices in 2009-2011 and assesses the impact of the RGGI-funded programs on electric system outcomes and the macroeconomy from 2009-2021.

Key findings include:

• The regional economy gains more than $1.6 billion in economic value added (reflecting the difference between total revenues in the overall economy, less the cost to produce goods and services)
• Customers save nearly $1.1 billion on electricity bills, and an additional $174 million on natural gas and heating oil bills, for a total of $1.3 billion in savings over the next decade through installation of energy efficiency measures that use funding from RGGI auction proceeds
• 16,000 jobs are created region-wide
• Reduced demand for fossil fuels keeps more than $765 million in the local economy
• Power plant owners experience $1.6 billion in lower revenue over time, although overall they had higher revenues than costs as a result of RGGI during the 2009-2011 period 

The report is available on Analysis Group’s website.