CO2 Allowance Allocation in the Regional Greenhouse Gas Initiative and the Effect on Electricity Investors

The Regional Greenhouse Gas Initiative among Northeastern states is expected to lead to an increase in the price of electricity in the region and beyond. In the RGGI region, changes in the value of electricity-generating assets may be positive or negative, while changes outside the Northeast are virtually always positive. For stakeholders in the industry, the change depends on the portfolio of assets held by affected firms.