Most New York households would benefit from higher cap-and-invest prices, reports say
ALBANY, New York — New York’s most vulnerable residents would fare better financially if Gov. Kathy Hochul set a higher price limit for polluters in a cap-and-trade style system, according to two reports backed by environmental advocates.
The reports show that directing some of the money raised by placing a fee on carbon emissions to consumers would leave the average low-income household better off — and that a higher fee would offer more benefits. One study found the average household making less than $200,000 would see a net benefit.
That study also highlights a potential regional disparity in net costs that could be remedied by giving bigger checks back to households in areas where people drive farther or pay more to heat their homes.
“If the stated intention is to — I don’t want to be crass about it — but if it's to put more money in New Yorkers’ pockets, here's a way to do it,” said Eddie Bautista, the executive director of the New York City Environmental Justice Alliance. “This idea that a low price ceiling is, in fact, the more affordable way to go? This study, for us, kind of blows that up.”
NYC-EJA worked with Resources for the Future on a report released Monday that looks at household impacts of different cap-and-trade price levels. It examines impacts at different income levels when a third of the revenue is distributed to households based on income and location.