New England Power Generators pushing for a carbon tax

Monitor Staff
Published: 6/25/2020 10:57:27 AM

A utility group representing most of the power plants in New England is supporting the idea of a tax on the carbon content of emissions, an idea supported by many economists as the simplest and most market-based way to reduce greenhouse gas production.

The report by Cavicchi and Paul Hibbard of the Analysis Group for New England Power Generators Association says a price of between $25 and $70 per ton of CO2 in emissions would drive changes in electricity production, transportation and heating that could meet the region’s emissions targets.

A carbon tax would raise the price of gasoline and heating oil, spurring a switch to electric vehicles and electric heat pumps. As the power grid comes cleaner with more renewable energy, that would reduce greenhouse gas emissions. This strategy, often placed under the slogan “electrify everything,” is a major plank in many proposals to fight the climate emergency.

The report argues that total spending would also decline by switching to electrified transportation and heating, saving customers money.

The New England Power Generators Association who owns most of the electricity-producing facilities in New England, so they would benefit from any switch of energy sources to electricity. 

The report can be seen online at



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