Physical Sciences and Mathematics Commons^™

Effects Of The Transportation And Climate Initiative On The Maine Economy: An Analysis Of Cap-And-Invest And Its Heterogeneous Impacts On Rural And Urban Households, William L. Somes

Honors College

In December 2020, a memorandum of understanding (MOU) was released by the Transportation and Climate Initiative Program (TCI-P), a collaboration of 13 jurisdictions in the New England and Mid-Atlantic regions of the United States. Modeled on the Regional Greenhouse Gas Initiative (RGGI), the TCI-P follows a cap-and-invest framework to reduce emissions from the transportation sector by 26% from 2022 to 2032. Since the TCI-P is expected to raise the price of gasoline by 5¢ to 9¢ per gallon, there has been concern that some populations may be disproportionately affected. The present research studies the potential heterogeneous impacts of the TCI-P …