Massachusetts Law Requires Public Utilities Commission to Consider Social Cost of Carbon in Benefit-Cost Analysis
-
Application
To monetize benefits of greenhouse gas emissions reductions to assess the cost-effectiveness of Department of Public Utilities energy-efficiency and demand-reduction programs.
-
Date
May 2021 -
Details
In March 2021, the Massachusetts legislature enacted a law that required the state’s Department of Public Utilities to consider the “social value of greenhouse gas emissions reductions” when assessing the cost effectiveness of energy-efficiency and demand-reduction programs. The law also requires the Department of Public Utilities to consider the “social value of greenhouse gas emissions reductions” when issuing funding for energy-efficiency programs. As a result of the law, the social cost of greenhouse gases must be considered in any required cost-benefit analysis for these programs, which could make additional emissions reduction measure pass the agency’s benefit-cost analysis. The legislation does not specify a particular social cost of greenhouse gases value or methodology.
Feedback? Please email [email protected].
