The headline says that the CO2 allowances were priced at $3 in the 2013 auction:
Having completed revisions to their state CO2 Budget Trading Programs, the nine states participating in the Regional Greenhouse Gas Initiative (RGGI) announced that the 2014 RGGI cap is 91 million tons. This represents a 45 percent reduction to the RGGI CO2 cap. To further build on this progress, the RGGI cap will decline 2.5 percent each year from 2015 to 2020. By 2020, power plant CO2 pollution in the nine RGGI states is projected to be half of 2005 levels.
The first CO2 allowance auction under the new cap, and the twenty-third RGGI auction overall, will take place on March 5, 2014. The RGGI states released the Auction Notice for CO2 Allowance Auction 23 today.
Having strengthened their successful carbon pollution reduction program, the RGGI states have submitted extensive comments to the United States Environmental Protection Agency (EPA) describing why regional cap-and-trade programs, like RGGI, offer a simple, cost-effective way for states to comply with upcoming EPA regulations to cut CO2 pollution from existing power plants....
Here is a test question for your students:
All things equal, the allowance price will be __________ in the 2014 auction:
- the same
- none of the above; all things equal? give me a freakin' break! job killing cap-and-trade is an energy tax. Q.E.D.