Based on requirements from MDE, this project will analyze multiple
aspects of the RGGI program and how it both positively and potentially
negatively might affect the State of Maryland as well as neighboring
regions. In particular, our impact study will evaluate whether
the State's participation in the RGGI has or may have an adverse
impact on the:
-- Preservation and enhancement of the economic welfare of
the residents of the State;
-- Maintenance of a safe and reliable electric power supply in the State,
-- Adequacy of the energy supply in the State, including the potential for power
-- Ability of persons who own, lease, operate, or control an affected facility
to compete in neighboring states, or,
-- Electric rates for residents of the State.
The study shall take into consideration a number of factors,
-- The number of states that are included as full participants
in the RGGI,
-- The mix of energy resources in the states that are included as full participants
in the RGGI; and,
-- Availability of credits among participating states.
The analysis of the aforementioned items is a complex task
which necessarily involves experts in energy, the environment,
economics, and modeling. To this end, the University of Maryland’s
Center for Integrative Environmental Research (CIER) has assembled
a talented team of researchers and industry experts. CIER will
have overall responsibility for the project making sure that
the issues mentioned above are carefully analyzed and reported
in a clear and comprehensive way.
Project Modeling Researchers from Johns
Hopkins University (JHU) and Resources
for the Future (RFF) will be partnering with the University
of Maryland as subcontractors, and will be applying their
expertise in the modeling of the electric power grid as well
as the resulting environmental impacts. In particular, both
JHU and RFF will be using existing models -- Oligopolistic
Power Market Model (JHU) and Haiku Model (RFF) -- that can
directly answer questions such as adequacy of the energy
supply, generator competitiveness, electricity rates, and
reliability issues in addition to providing some summary
economic measures such as producer and consumer surplus.
These models have already been applied in different contexts
to address energy sector issues in Maryland. In addition,
the University of Maryland itself will draw upon its expertise
in electric power and environmental issues. In terms of the
economic effects, Towson
University’s (TU) RESI will be brought in to use
their input-output model to measure the economic welfare
impact of RGGI participation on the State of Maryland.
View details on each modeling approach by clicking
The resulting analysis and report will consequently provide
the State with a comprehensive review of all of the major impacts
of Maryland’s participation in RGGI so that it can make
appropriate decisions for the benefit of Maryland and its residents.
The assessments presented to the State will be based on the
best available science, modeling and economic analysis conducted
by the most qualified individuals and institutions. A study
report detailing the result of the various model runs will
be provided to MDE in January 2007.