News & Events

News

Cap-and-Trade For Cars Considered in Seven Northeast States

As reported in Bloomberg Environment: Northeast states could be close to an agreement on a regional program to control greenhouse gas emissions in the transportation sector, several people with knowledge of ongoing discussions told Bloomberg Environment.

John M. DeCicco, a research professor at the University of Michigan Energy Institute and director of the university’s Energy Survey, said the impact on gasoline prices from a carbon tax on fuel or from a cap-and-trade program would be less than the normal fluctuation in oil prices due to market volatility.

DeCicco estimated that a $10 per-ton tax on carbon would raise gas prices at the pump by 9 cents per gallon and a $40 per ton carbon tax would raise gas prices by 36 cents per gallon at the pump. He said it was “very economically manageable” to expand the RGGI model to the transportation sector. 12/6/2018 Cap-and-Trade For Cars Considered in Seven Northeast States

The Energy Survey polled consumers in 2017 to measure their threshold for pain at the pump. It found that 90 percent of those surveyed would consider gas prices affordable, even with a 36-cent increase resulting from a carbon tax of $40 per ton.