A new report conducted by Analysis Group’s electric industry and economic experts finds that states are well positioned to implement the Environmental Protection Agency’s (EPA) Clean Power Plan.
The report, EPA’s Clean Power Plan: States’ Tools for Reducing Costs & Increasing Benefits to Consumers, is based on states that currently experience regulating carbon pollution.
“Several states have already put a price on carbon dioxide pollution, and their economies are doing fine. The bottom line: the economy can handle – and actually benefit from – these rules,” said Analysis Group Senior Advisor Susan Tierney.
The EPA’s proposed Clean Power Plan would limit carbon emissions from existing fossil-fueled power plants. The draft is expected to be finalized in 2015.
Dr. Tierney, Vice Presidents Paul Hibbard and Andrea Okie lead the study.
“We found that well-designed programs implementing the Clean Power Plan will not lead to major price impacts or economic disruption. Costs from well-designed CO2-pollution-control programs will be modest in the near term and likely offset by longer-term benefits for all and common protections for low-income customers,” said Hibbard. “Experience shows that states that work together on market-based compliance initiatives – like RGGI in the Northeast – can provide net economic benefits in terms of jobs and economic output. And RGGI shows that each state can have control over its own program design, so that combined efforts don’t step on states’ rights.”
Investing in energy efficiency is the most economically beneficial way to achieve carbon cuts, the report found.
“One thing is clear: Cost-effective energy-efficiency programs created as part of states’ CO2 compliance strategies can help deliver significant benefits to customers and to local economies,” added Dr. Tierney.
To read the report, click here.
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