Report, Carbon Pricing in Wholesale Electricity Markets: An Economic and Legal Guide

The Institute for Policy Integrity’s 2020 report explains how such carbon-pricing rules in organized wholesale electricity markets can improve economic efficiency. It then explores the economic principles and legal requirements for RTOs, states, and FERC to consider when implementing a carbon-pricing rule in organized wholesale electricity markets. It identifies several policy-design approaches that, to varying degrees, meet those economic principles and are likely to be found legally permissible.