Low Cost for Saving Climate
Two new analyses on the economics of Waxman-Markey -- the ever-expanding legislation tackling US greenhouse gas emissions through a cap-and-trade program and investments in renewable energy -- conclude that the bill wouldn't break the bank for consumers, and in fact could even save people money. Not bad for a law that would bring sweeping changes to the energy economy and wean the United States off carbon.
On Tuesday the Environmental Protection Agency released its latest analysis (see the June 2009 links). It pencils out the cost of the permits under the cap, the amount of power that will come from clean sources, changing energy prices, and the cost and availability of offsets (paying non-regulated polluters to reduce emissions or for the protection/planting of carbon-consuming forests).
Considering scenarios that include different strategies for meeting energy needs, the EPA concludes that by 2020, average electricity prices might not change at all, or might rise by as much as 17 percent. It goes on to say that in the best-case scenario:
"Actual household energy expenditures increase by a lesser amount due to reduced demand for energy. In 2020, the average household’s energy expenditures (excluding motor gasoline) decrease by 7 (percent)..."
In the least favorable scenario, household energy spending increases by 8 percent. Overall, the EPA said the average American could pay between $80 to $111 per year if the bill passes.
