Several states could cut electricity bills by charging power plants for their climate pollution and giving the money to ratepayers, a new report said.
Using carbon fees to subsidize utility costs could save households $62 to $250 per year, according to the analysis by Resources for the Future, a research nonprofit focused on environmental and economic policies.
The group looked at states that have commitments to cut greenhouse gas emissions or measures that promote renewable energy growth. They include Arizona, Colorado, Illinois, New Mexico, North Carolina, Michigan, Minnesota and Wisconsin.
Policies that limit climate pollution are often criticized by political opponents for potentially raising energy costs, but that doesn’t have to be the case, said Dallas Burtraw, a senior fellow at Resources for the Future and an author of the report.
