Higher Energy Costs Will Lower Disposable Income by $1.8 Billion

earth stratosphereOn Monday, the federal Environmental Protection Agency finalized a new set of rules – known as the Clean Power Plan – that would aim to cut carbon emissions by 32 percent over the next 15 years.

The new rules are part of President Obama’s effort to combat global warming, but are only anticipated to reduce global temperatures by .018 degrees by the year 2100.

According to a joint report by The John K. MacIver Institute for Public Policy and The Beacon Hill

Institute at Suffolk University, these new rules will have a devastating impact on Wisconsin’s economy.

The original Clean Power Plan proposal would cost Wisconsin $920 million in 2030 and increase electricity prices by 19 percent. Wisconsin would also lose 20,995 jobs from these higher energy costs, leading to $1.82 billion less disposable income and $236 million less investment in the state.

Brett Healy, president of the MacIver Institute, released the following statement after the new rules were announced:

“Wisconsin’s economy cannot afford another mandate from the federal government that only serves to hamper our economy. The state relies heavily on coal for electricity – 62 percent is generated by coal power plants – and these new regulations will cause plants to either close or pay for costly updates. Both would make energy prices necessarily skyrocket.

“According to our study, Wisconsin’s electricity prices would jump 19 percent under the original proposal that called for a 30 percent reduction in carbon emissions. With that number up to 32 percent in the final plan, prices will likely climb even higher.

“The EPA needs to listen to the citizens of Wisconsin and the rest of the country. These regulations are a hindrance to the economy and should not be forced down our throats.”

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