WHY HAVE GREENHOUSE EMISSIONS IN RGGI STATES DECLINED? AN ECONOMETRIC ATTRIBUTION TO ECONOMIC, ENERGY MARKET AND POLICY FACTORS
The Regional Greenhouse Gas Initiative (RGGI) is a consortium of northeastern U.S. states that have agreed to limit carbon dioxide (CO2) emissions from electricity generation through a regional emissions trading (cap-and-trade) program. Since the initiative came into effect in 2009, CO2 emissions have dropped precipitously, while the price of emission allowances has also fallen. We investigate why emission reductions were achieved so quickly and so inexpensively. November 2015.