Economists urge New York state leaders to move a cap-and-invest program forward

ALBANY, N.Y. — Leading environmental and energy economists today released an open letter urging Governor Hochul and the New York State Legislature to move forward with a cap-and-invest program as soon as possible as a centerpiece of implementing the state’s Climate Law.

As proposals to weaken the Climate Law’s pollution standards are being actively discussed as part of New York’s budget negotiations, the economists underscore that cap-and-invest is a proven and cost-effective approach to reducing climate pollution and ensuring affordability for consumers, with successful models operating around the country and the world. With timely implementation of these tools, New York policymakers can have confidence in retaining mandatory, science-based pollution reduction targets in the next decade, and achieving them while reducing costs for New York households.

“Economics research has demonstrated for decades that putting a price on emissions is the most cost-effective approach to reducing emissions,” said economists from academic, research and environmental institutions including Cornell University and Columbia University. “In addition to ensuring the state is achieving its emissions targets at lowest cost, one of the unique strengths of cap-and-invest is the opportunity to reinvest revenues raised by the program to ensure consumers realize net benefits, and to further accelerate the transition to clean energy solutions that will lower energy costs for consumers and businesses.”

The economists conclude, “New York should initiate its cap-and-invest program as soon as possible, as delay increases the cost of achieving emissions targets in future years and creates uncertainty for businesses and investors. As policymakers seek the most affordable path to making progress on emissions reductions and scaling clean energy, cap-and-invest is a proven and effective policy mechanism and should play a central role.”