Proposed CO2 regs would cause $51 billion loss in GDP by 2030
The Environmental Protection Agencyês proposed regulations for coal plants could have a drastic effect on the economy, says a new report from the U.S. Chamber of Commerce. The proposal would shut many coal plants in an effort to cut carbon emissions 42 percent from 2005 levels by 2030.
The Chamber estimates that average annual GDP would be reduced by $51 billion and 224,000 fewer U.S. jobs would be created every year through 2030 as a result of the regulations. The shuttered coal plants would be replaced by natural gas plants with carbon capture and sequestration, renewables and some nuclear energy. The changes mean consumers could be expected to pay nearly $190 billion more for electricity between 2014 and 2030, the report says.
Spending in pursuit of regulatory compliance rather than economic expansion will lead to an overall drop in U.S. economic output, says the report. The subsequent negative impacts on GDP and employment will exert additional downward pressure on disposable income and consumer spending.
The South Atlantic, which includes Maryland, DC and Virginia, would be hit the hardest in terms of GDP and lower job numbers, according to the report.Download Bulletin PDF