Analysis Group Assesses Potential Impacts of Carbon Pricing for the New England Power Generators Association

June 23, 2020

At the request of the New England Power Generators Association (NEPGA), a regional association representing electric generating companies in New England, Analysis Group Vice President Joseph Cavicchi and Principal Paul Hibbard prepared a report assessing the potential use of carbon pricing in New England. The analysis applies tested industry models to identify effective and efficient economy-wide pricing of carbon dioxide (CO2) emissions consistent with New England state greenhouse gas (GHG) emission reduction targets.

Based on their modeling results and assessments of New England’s history with competition and emission control programs, Mr. Hibbard and Mr. Cavicchi found that a progressively increasing price on CO2 emissions would allow for market competition to drive decarbonization in the power sector, while reliably addressing rapidly rising electricity demand in the transportation and building sectors. Their analysis supports the conclusion that implementing carbon pricing in the electric sector will be a vital tool in achieving decarbonization targets at the lowest possible cost while preserving the benefits of wholesale market competition for the region’s electricity consumers.

Read the Report

Read the Summary for Policy Makers

Read the Technical Appendix