According to a study released on October 28, 2020 by the consulting firm Energy + Environmental Economics (E3) and commissioned by the Electric Power Supply Association (EPSA), a national trade group representing competitive power suppliers, PJM Interconnection, the nation’s largest grid operator, could reduce greenhouse gas (GHG) emissions nearly 30% and save consumers $2.8 billion by 2030 by setting a modest carbon price.[1]

The report examined four scenarios: a Business as Usual (BAU) scenario that is representative of current policy; a Renewables Portfolio Standard (RPS) scenario where increased renewable generation is mandated; a Clean Energy Standard (CES) scenario that credits any form of qualifying clean power; and a Greenhouse Gas (GHG) Reduction scenario that places a price on carbon through a cap-and-trade program. Of these scenarios, the report found that the most cost-effective policies are ones directly target carbon emissions, either by placing a price on carbon or by placing a limit on electricity-sector carbon emissions. The report found that a carbon price of $10 per ton could reduce 80 million metric tons of GHG emissions in PJM. The study also found that current state policies that mandate low-carbon goals such as RPS are "costly and ineffective" at reducing emissions. These policies would increase system costs by over $3 billion per year by 2030 while only achieving 40 million metric tons of emissions reductions.

[1] https://www.eenews.net/assets/2020/10/29/document_ew_02.pdf