Keeping Electricity Bills Low as the Power Sector Curbs Carbon Pollution

Well-designed market-based carbon pollution–reduction programs are proven, successful, and cost-effective approaches for cutting the dangerous carbon dioxide pollution that is driving climate change. At the same time, these programs provide important opportunities to keep electricity bills low for American households and businesses. Using simple, illustrative examples, this issue brief explores the ways in which energy efficiency and renewable energy investments can help ensure electricity bills stay low, as well as opportunities to harness allowance revenue to create significant economic benefits under market-based carbon-reduction programs. States can seize these opportunities to reduce pollution and deliver economic and health benefits to electricity customers by expanding on policies that support energy efficiency and renewable energy.