NY households would benefit from higher cap-and-invest prices, reports say

By Marie J. French | 01/14/2025 06:10 AM EST

Two reports backed by environmental advocates found distributing money raised from a cap-and-trade program would leave households better off.

ALBANY, New York — New York’s most vulnerable residents would fare better financially if Gov. Kathy Hochul set a higher price limit for polluters in a cap-and-trade style system, according to two reports backed by environmental advocates.

The reports show that directing some of the money raised by placing a fee on carbon emissions to consumers would leave the average low-income household better off — and that a higher fee would offer more benefits. One study found the average household making less than $200,000 would see a net benefit.

That study also highlights a potential regional disparity in net costs that could be remedied by giving bigger checks back to households in areas where people drive farther or pay more to heat their homes.

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“If the stated intention is to — I don’t want to be crass about it — but if it’s to put more money in New Yorkers’ pockets, here’s a way to do it,” said Eddie Bautista, the executive director of the New York City Environmental Justice Alliance. “This idea that a low price ceiling is, in fact, the more affordable way to go? This study, for us, kind of blows that up.”

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