Since the start of the program, RGGI member states have seen a GHG reduction 16% deeper than that of non-RGGI states during the same period.1 The potential emission reductions for Maryland from the RGGI program in 2020 are estimated to be 3.60 MMtCO2e. According to EPA's most recent social cost of carbon calculations (updated July 2015), this translates to an avoided cost of approximately $176 million in that year.2, 3 Assuming persistence of the program, the avoided emissions, and therefore savings would continue to accumulate in subsequent years. The social cost of carbon metric is intended to encompass a variety of damages due to climate change, including human health costs; however, as the IPCC fifth assessment report notes, there are limits to economic assessments of climate change risks based on an incomplete accounting and a number of assumptions involved in these and most models.4 Therefore, while cost-benefit analyses of climate impacts are useful, they should not be employed as a stand-alone evaluation of mitigation efforts.
Environmental Benefits
Maryland's current environment has evolved based on the conditions of a climate which had until recently been changing very slowly in the years since the last ice age. Relatively rapid changes can only be tolerated within a certain range, often referred to as the system's resiliency. Once this threshold is passed, the impacts are far more pervasive and likely irreversible. It is, therefore, crucial to take steps such as the RGGI program which reduce CO2 emissions and limit the extent of climate change, in addition to implementing adaptation strategies which increase our resiliency.
Some of the environmental benefits from reduced emissions will be measurable in the form of avoided damages and costs expected to permeate various sectors of Maryland's economy. Agriculture, fisheries, energy and certain types of tourism are all impacted by temperature and precipitation patterns, and therefore, are expected to be at high risk from climate change. Other damages to the environment, such as those at the ecosystem level or to the intrinsic value of nature, are inherently more difficult to quantify, though perhaps the most obvious and visible risks are those posed to the Chesapeake Bay. The Bay ecosystem is an invaluable and iconic part of Maryland and substantial time and effort has been dedicated to its protection and restoration. Some examples of risks to various sectors and segments of Maryland are highlighted below.
Examples of Risks from Climate Change
Agriculture
- Heavy precipitation and extreme heat events can damage crops
- Wet springs may delay planting
- Long, dry summers reduce water availability and increase heat stress on plants
- Warmer winters may increase pressure from weeds and pests
Fisheries
- Warming habitats may shift commercial fish populations northward
- Warming waters also bring new pests and increase damage from disease
- Changes in acidity and water chemistry make it harder for crabs and oysters to build their shells
Tourism
- Regional tourism will face various impacts depending on the nature of the activity
- Warmer winters make it more difficult for Maryland ski resorts to maintain adequate snow cover
- Beaches are susceptible to more extreme weather events as well as sea- level rise
Energy
- Hotter summer temperatures increase peak electricity demand, making it more difficult and possibly more expensive for utilities to provide electricity during these times
- Electricity is more likely to fail precisely when it is most needed: when peak summer demand exceeds supply
The Chesapeake Bay
- Warmer waters mean lower dissolved oxygen content, exacerbating dead zones
- Eelgrass, which provides food and shelter for fish, crabs and waterfowl, becomes stressed in warmer waters
- Marsh and wetland habitat may be lost due to inundation from sea-level rise
Economic Benefits
Maryland invests auction revenue in the Strategic Energy Investment Fund (SEIF), which is administered by the
Maryland Energy Administration (MEA). SEIF is comprised of a variety of funding sources, however, RGGI auction proceeds are the primary component. Investments include
EmPower Maryland projects such as energy efficiency upgrades for low-to-moderate income families; direct bill assistance; and projects that promote affordable, reliable and clean energy across Maryland. Low-income households use a proportionally larger percentage of their total income to pay for electricity bills - on average more than three times the amount of higher income households.
5 SEIF funding helps to alleviate the cost of monthly bills both immediately with bill-pay assistance, and in the long-term with energy efficiency upgrades. Additionally, energy efficiency measures decrease the total demand for electricity, placing downward pressure on electricity prices.
6 SEIF's 2016 Report on Fund activities may be found
here, and information on specific programs may be found on the websites of the
Maryland Department of Housing and Community Development, the
Office of Home Energy Programs and the
Maryland Energy Administration.