June 20, 2016

Study: Costly EPA Power Plant Rule “Will Have No Physically Measurable Impact On World Climate”

As readers are aware, the Metals Service Center Institute strongly opposes the U.S. Environmental Protection Agency’s (EPA) Clean Power Plan (CPP), which would set new emissions limits on U.S. coal-fired power plants. A new study by the Manhattan Institute has found that the EPA overestimated the benefits of the CPP while underestimating the costs. In a study released last week, the Institute said:

  • The EPA’s cost-benefit analysis suffers from a fundamental flaw because it compares estimates of world economic benefits against a subset of U.S.-only costs.
  • The EPA’s cost-benefit analysis significantly overestimates the direct benefits of carbon dioxide reductions and co-benefits of accompanying reductions in air-pollutant emissions and significantly underestimates the specific costs of meeting future electricity demand.
  • The CPP will have no physically measurable impact on world climate, estimated to be less than 0.01 degrees Celsius by the year 2100 using an EPA-sponsored climate model.

Click here read the full report. Economics21 also has a summary of the report. 

Charles McConnell, who at one point served as assistant energy secretary under President Barack Obama, made the same arguments recently before a U.S. House subcommittee. In testimony, McConnell said, “To get some perspective on how irrelevant EPA’s plan is, after exacting tremendous pain on the U.S. economy and ratepayers, a full year’s worth of annual reductions in 2025 would be offset by Chinese emission in just three weeks.”