Featured Research

from universities, journals, and other organizations

Greenhouse Gas Auction Revenues Can Help Cut Maryland Electric Use Significantly, Says Study

Date:
October 22, 2008
Source:
University of Maryland
Summary:
Maryland officials can reduce electricity use in the state significantly by investing revenues from the Regional Greenhouse Gas Initiative cap-and-trade auctions in energy efficiency programs, says a new study. It adds that neighboring states might benefit as well.

Maryland officials can reduce electricity use in the state significantly by investing revenues from the Regional Greenhouse Gas Initiative (RGGI) cap-and-trade auctions in energy efficiency programs, says a new study from a University of Maryland-led research team. It adds that neighboring states might benefit as well.

Related Articles


Investments might range from direct subsidies helping consumers or businesses buy more energy-efficient appliances to technical assistance retrofitting buildings to public awareness campaigns, though the study does not recommend any specific approach.

Members of the 10-state RGGI group, including Maryland, recently conducted the nation's first carbon emissions auction, raising nearly $40 million in revenues. State officials have begun making plans for allocating that money, with the largest portion to be devoted to efforts to increase energy efficiency.

The new study concludes that:

  • Investing a greater share of auction revenues in programs designed to encourage more efficient consumer and commercial use of electricity will produce significantly greater benefits, keeping the state on track to meet its energy-use reduction targets.
  • Even though prices may not go down, consumers may see some modest savings because they consume less electricity due to efficiency improvements.
  • The overall economic impact on the state of these investments will be positive.

The University of Maryland's Center for Integrative Environmental Research (CIER) produced the study along with a research team from Resources for the Future, The Johns Hopkins University, and Towson University.

"Our findings suggest that state decision makers are heading in the right direction," says University of Maryland public policy professor Matthias Ruth, the principal investigator and director of the Center for Integrative Environmental Research. "Maximizing spending on energy efficiency does pay off in significantly increased benefits and encouraging efficiency accounts for the major part of the state's most recent plans." The Maryland Department of Environment commissioned the study, The Role of Energy Efficiency Spending in Maryland's Implementation of the Regional Greenhouse Gas Initiative, to help the state explore the economic and environmental implications of using RGGI revenue in support of energy efficiency programs, as well as to determine the impact on producers, consumers and other stakeholders. The analysis began prior to last month's auction and the study's findings are not based on its results.

"Our study doesn't prescribe a specific investment strategy for the state, but instead provides a yardstick for measuring the impact of investments in energy efficiency," Ruth adds. "The bottom line is that the revenues from the nation's first greenhouse gas auction can be invested to decrease energy consumption and create a positive overall economic impact, all while providing significant environmental benefits. This research should give officials independent confirmation that they're on solid economic ground."

As a member of the 10-state RGGI pact, the state is allocated an annual budget, or a cap, for carbon dioxide emissions allowances. By auctioning these off to energy producers, the state raises money, some of which must be used to benefit consumers.

Using a series of sophisticated modeling techniques, the research team compared the impact of investing half versus all auction revenues in efficiency improvements against a low-investment baseline of one-quarter. These scenarios assume that Maryland will sell off all of its allowances to producers, rather than giving some away. Auctioning a majority of allowances is the "clear trend" among most RGGI states, the report says.

The full CIER report is available online: http://cier.umd.edu/RGGI/index.html.


Story Source:

The above story is based on materials provided by University of Maryland. Note: Materials may be edited for content and length.


Cite This Page:

University of Maryland. "Greenhouse Gas Auction Revenues Can Help Cut Maryland Electric Use Significantly, Says Study." ScienceDaily. ScienceDaily, 22 October 2008. <www.sciencedaily.com/releases/2008/10/081022164714.htm>.
University of Maryland. (2008, October 22). Greenhouse Gas Auction Revenues Can Help Cut Maryland Electric Use Significantly, Says Study. ScienceDaily. Retrieved December 21, 2014 from www.sciencedaily.com/releases/2008/10/081022164714.htm
University of Maryland. "Greenhouse Gas Auction Revenues Can Help Cut Maryland Electric Use Significantly, Says Study." ScienceDaily. www.sciencedaily.com/releases/2008/10/081022164714.htm (accessed December 21, 2014).

Share This


More From ScienceDaily



More Earth & Climate News

Sunday, December 21, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Raw: Lava on Track to Hit Hawaii Market

Raw: Lava on Track to Hit Hawaii Market

AP (Dec. 19, 2014) Lava from an active volcano on Hawaii's Big Island slowed slightly but stayed on track to hit a shopping center in the small town of Pahoa. (Dec. 19) Video provided by AP
Powered by NewsLook.com
Birds Might Be Better Meteorologists Than Us

Birds Might Be Better Meteorologists Than Us

Newsy (Dec. 19, 2014) A new study suggests a certain type of bird was able to sense a tornado outbreak that moved through the U.S. a day before it hit. Video provided by Newsy
Powered by NewsLook.com
Navy Unveils Robot Fish

Navy Unveils Robot Fish

Reuters - Light News Video Online (Dec. 18, 2014) The U.S. Navy unveils an underwater device that mimics the movement of a fish. Tara Cleary reports. Video provided by Reuters
Powered by NewsLook.com
Arctic Warming Twice As Fast As Rest Of Planet

Arctic Warming Twice As Fast As Rest Of Planet

Newsy (Dec. 18, 2014) The Arctic is warming twice as fast as the rest of the planet, thanks in part to something called feedback. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Plants & Animals

Earth & Climate

Fossils & Ruins

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins