According to a new report by the US Chamber of Commerce’s Institute for 21st Century Energy, the US Environmental Protection Agency’s (EPA’s) plans to regulate carbon dioxide emissions from power plants will cost America’s economy over US$ 50 billion/y between now and 2030.
The analysis found that the EPA’s proposed new carbon regulations would:
- Lower US GDP by US$ 51 billion/y on average.
- Lead to 224 000 fewer US jobs on average every year, with a peak GDP loss of approximately US$ 104 billion in 2025.
- Cumulatively increase consumer electricity payments to US$ 289 billion from 2014 to 2030.
- Lower total disposable income for US households by US$ 586 billion. Annual real disposable income will decline an average of US$ 200, with a peak loss of US$ 367 in 2025. The typical household could lose a cumulative US$ 3400 in real disposable income between 2014 and 2030.
- Generate US$ 480 billion in cumulative compliance costs by electricity providers through 2030.
Karen Harbert, president and CEO of the Energy Institute, commented: “Americans deserve to have an accurate picture of the costs and benefits associated with the Administration’s plans to reduce carbon dioxide emissions through unprecedented and aggressive EPA regulations. Our analysis shows that Americans will pay significantly more for electricity, see slower economic growth and fewer jobs, and have less disposable income, while a slight reduction in carbon emissions will be overwhelmed by global increases”.
Global carbon emissions are expected to rise by 31% between 2011 and 2013. The Energy Institute found that the regulations would reduce overall emissions levels by only 1.8%.
Other countries renege on past commitments
The Institute for Energy Research (IER) has highlighted that other countries that have implemented greenhouse gas reduction strategies have found that they reduce economies, put hardship on citizens and do little good in terms of global emissions reduction.
Last month Russia suggested that the UN-endorsed goal of capping rising global temperatures shouldn’t dictate countries’ emission limits in a new climate treaty for 2020.
Australia’s new government plans to dismantle legislation that levies fees in carbon emissions and replace it with taxpayer-funded grants to companies and projects that reduce emissions.
Japan reneged on its original 25% reduction from 2005 levels in 2020 to a 3.8% reduction in emissions. This means that by 2020 Japan’s emissions will have increased by 3.1% above 1990 levels, adding another 356 tpy of CO2 equiavalent to the atmosphere.
Edited from various sources by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/02062014/epa_carbon_regulations_635/