The new EPA regulations that order 30 percent cuts in power plant greenhouse gas emissions by 2030 claim to create benefits that offset the cost of compliance — higher power bills.
The 645-page document claims climate benefits of $30 billion, health benefits of up to $59 billion, but compliance cost of only $7.3 billion in the year 2030. How one calculates climate benefits when there has been no detectible change in the climate in 17 years, despite higher carbon output that ever, is a mystery.
It basically is a decree to shut down all coal-fired power plants since they produce the most carbon.
The U.S. Chamber of Commerce estimates the rule will cut the average annual economic output by $51 and and cost 224,000 jobs every year through 2030.
Nevada is already in the process of shutting down all its coal-fired power plants by legislative decree and can expect to be seeing higher bills in the coming years. The law requires ratepayers to foot the bill for every dime of cost of shutting those plants, though presumably, under the EPA regs, those plants would have to have been shut down anyway, perhaps at the expense of the company and its shareholders.
The bottom line is that Americans will be paying real money for theoretical benefits.
Patrick Michaels at Cato Institute spells out the vaunted benefits of this move:
“The EPA’s own model, ironically acronymed MAGICC, estimates that its new policies will prevent a grand total of 0.018ºC in warming by 2100. Obviously, that’s not enough to satisfy the steadily shrinking percentage of Americans who think global warming is a serious problem.
“MAGICC tells us that the futility of whatever Obama proposes for existing plants will be statistically indistinguishable from making sure that there are no new coal-fired ones. In fact, dropping the carbon dioxide emissions from all sources of electrical generation to zero would reduce warming by a grand total of 0.04ºC by 2100.”