Analysis Group Reports that RGGI Generated $1.6B

According to a new study by the Analysis Group, the Regional Greenhouse Gas Initiative Inc. cap-and-trade energy auction has added $1.6 billion in economic value to its ten member states, including Maine.

In The Economic Impacts of the Regional Greenhouse Gas Initiative on Ten Northeast and Mid-Atlantic States, the Analysis Group quantified the economic benefits of the cap-and trade energy auction based on experience during the first three years of the program.

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 using funding from RGGI auction proceeds to date
• 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 they overall had higher revenues than costs as a result of RGGI during the 2009-2011 period
• Maine received $27.2 million from the auctions, spending the bulk — $22.8 million — on energy efficiency and other utility programs, as well as energy audits and benchmarking.
• Maine spent approximately $4.4 million on greenhouse gas programs and program administration.
• In Maine, RGGI generated an economic impact of $92 million and created 918 jobs.