New financial data shows that Washington state residents are likely to pay higher gasoline prices after state voters this month defeated a ballot measure and preserved Washington’s two-year-old carbon market.
Gasoline prices have already increased slightly as businesses regulated under the market are having to pay more for “credits” they must buy to offset emissions. Voters defeated a ballot measure three weeks ago that sought to eliminate the carbon market, one of only two in the U.S. run by a state.
Washington’s carbon market regulates the state’s largest greenhouse gas emitters by requiring them to meet state emissions limits each year or pay the state with “credits” that each represent a ton of carbon pollution.
The credits are sold by the state and then resold and bought by regulated businesses and investors through a commodities market. Prices on the market fluctuate based on the perceived strength of Washington’s program.
