Analysis of a Carbon Fee or Tax as a Mechanism to Reduce GHG Emissions in Massachusetts

Client:

The Massachusetts Department of Energy Resources (DOER) commissioned a study to analyze how a possible revenue-neutral carbon tax (or fee) could be implemented in the Commonwealth. To explore the implications of a state-specific carbon tax, Synapse and Regional Economic Models, Inc. (REMI) developed a methodology for incorporating the supply-side energy system effects of CO2 pricing in the REMI macroeconomic models of the United States. Synapse used the ReEDS model to explore emissions and cost impacts of several policy structures for Massachusetts as well as for the rest of New England and the rest of the RGGI states.