Updated Analysis of National Greenhouse Gas Control Legislation on Alaska Energy Prices and Consumer Costs

Abstract

This memorandum is an update of a similar analysis that explores the possible economic effects on Alaska of proposed GHG control legislation. In this update we focus on a proposed bill that is similar to the “Bingaman-Specter Discussion Draft” that we discussed in March. The current proposal contains a $12/metric ton safety valve price ($12 refers to nominal dollars in year 2012) rather than a $7/metric ton price. Specifically, this analysis is based on a NEMS analysis provided to us by NCEP that is labeled $12 Safety Valve Case.” We shall refer to this proposal as “Bingaman-12.”