The nation’s first cap-and-trade, greenhouse gas auction produced an “allotment” price of $3.07 per ton of carbon dumped into the air, says RGGI. That’s much lower than anticipated a year ago, but within the 2-to-4-dollar range that had been expected more recently. The higher the price, the more incentive there is for electricity producers to cut pollution, and the more money goes to the state for efficiency programs - but the higher the price, the more chance there is that our electric rates will rise.

All 12.5 million allowances were sold, to 59 bidders representing energy, financial and environmental interests. This is the first quarterly auction; the next one, in December, will include bids from New Hampshire state government, which sat out this one.

Here is the advance story I wrote on the auction, which took place last Thursday although the results weren’t announced until today. Here’s a Greentech Media piece which is quite good, explaining it in more detail.

Tags: RGGI