To the Editor:
We read with interest the recent commentary in support of a national carbon price (“Local action isn’t enough; we need carbon pricing to fight climate change,” Feb. 6, 2020). While there is no doubt a national approach would have a far greater impact, the likelihood of that happening in today’s political climate is slim. However, here in New York state we have a homegrown plan that is ready for implementation.
My organization, the New York Independent System Operator (a private, nonprofit organization that manages the New York electricity grid and its wholesale, competitive markets) has a proposal to incorporate the social cost of carbon dioxide emissions into New York’s wholesale electricity markets, commonly referred to as carbon pricing.
Here is how it works:
- The state sets the carbon price, a certain amount per ton of CO2 being emitted.
- Carbon-emitting power plants pay for the carbon they release into the atmosphere.
- About half of the revenue goes to low-carbon or carbon-free resources like wind, solar and hydro.
- The rest would be distributed back to consumers.
To read more, click here.