Full Title: Promoting Energy Affordability Using State Climate Policy
Author(s): Nicholas Roy and Dallas Burtraw
Publisher(s): RFF
Publication Date: August 27, 2025
Full Text: Download Resource
Description (excerpt):
This issue brief considers an opportunity for state governments to respond to this challenge by enhancing electricity affordability for households and concurrently boosting environmental outcomes. Investments in renewable energy and energy efficiency would reduce electricity costs. With the loss of federal support for these investments, we explore the potential introduction of a price on carbon dioxide (CO2) emissions in the electricity sector at the state level, via a cap or limit on power sector emissions sources, and coupling that price with a policy to direct program revenues to reduce residential electricity rates (Meng and Prasad 2025).