5.6.9 Pricing Carbon into Energy Costs

LPDD Recommendation: “Congress should clarify authorization of federal agencies such as EPA, FERC, and DOI to support the pricing of the carbon attributes of energy resources.”

LPDD Recommendation: “Congress should consider adoption of a national carbon tax to encourage investment in new low-carbon energy resources, while also aligning carbon pricing with the broader policies related to the pricing of interstate energy markets.”

LPDD Recommendation: “Congress should consider requiring the consideration of carbon costs in agency regulatory impact assessment and cost-benefit analysis, including by independent agencies and federal agencies allocating funding to state and local governments.”

Report, The Social Cost of Carbon in Taxes and Subisidies

An analysis of recent efforts to use the SCC as a direct value for taxes and subsidies applied to economic activity with a negative or positive carbon impact.

Resources for the Future Reports on Social Cost of Carbon

Resources for the Future coordinate economists and scientists to improve the science behind estimates of the SCC. They have published a range of briefs, reports, and testimony on improving utilization of the SCC.


Compiles a suite of resources and literature on the evolving effort to properly value the cost of carbon pollution, and highlights efforts and opportunities at the state and federal level to incorporate those costs into policy.

National Academies Papers on the Cost of Carbon

A 2016 Assessment of Approach to Updating the Social Cost of Carbon, and a 2017 follow-up, Valuing Climate Damages: Updating Estimation of the Social Cost of Carbon Dioxide.

NYISO carbon pricing proposal

Carbon Pricing Straw Proposal would reflect the cost of carbon emissions in wholesale energy market offers via a “carbon charge.”