Managing Investment Revenues and Costs in the Transportation Climate Initiative Region

Dallas Burtraw, Maya Domeshek and Derek Wietelman
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Dallas Burtraw: Resources for the Future
Maya Domeshek: Resources for the Future
Derek Wietelman: Resources for the Future

No 20-05, RFF Issue Briefs from Resources for the Future

Abstract: TCI plans for investment of emissions allowance auction proceeds to modernize transportation infrastructure to accelerate emissions reductions, and lower consumer costs.Allowance price and auction revenue variability could pose a challenge to state agencies planning investments and making long-term budgeting decisions.Emissions and cost containment reserves provide the most direct mechanisms to govern allowance price and auction revenue variability.A price staircase with quantities of allowances made available at many different price steps would provide the greatest stability for the market.

Date: 2020-04-07
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