Economic Impacts of Proposed Emissions Policies on Utilities

By Economic Development Research Group, 2003

The Clear Skies Act 2003, and the Carper Amendments

For a private client, EDR Group analyzed the national economic impacts on a regional basis of electric and gas utilities meeting proposed emission targets. The costs of meeting emissions targets have the following potential consequences:

  • Changes in electric and gas prices to all users,
  • Shifts in mining activity around the U.S. and,
  • Investment in sectors assembling new generation infrastructure due to retired capital, or
  • A new mix of generation resources required.

A multi-area U.S. REMI model was used to forecast impacts through 2021 on GRP, income, and employment and business sales (total, construction, mining, manufacturing, non-manufacturing).

The results obtained by applying the REMI multi-region U.S. model became part of testimony before Congress in 2003.

Clear Skies Act and the Carper Amendments

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