Why is the U.S. climate bill raising household energy cost?
Climate change legislation passed by the U.S. House of Representatives would increase the energy costs of the average family by $142 a year in 2020 and by $583 in 2030, according to the government’s top energy forecasting agency. The estimate from the U.S. Energy Information Administration is in line with cost impact projections made by the Congressional Budget Office and the Environmental Protection Agency, and contradict claims by energy and business trade groups that consumers would pay thousands of dollars more a year under a government plan to fight global warming. The EIA’s estimate says gasoline prices would be 23 cents a gallon higher in 2020 and 36 cents more in 2030, according to a copy of the agency’s analysis that was sent to U.S. lawmakers and obtained by Reuters. Jeremy Symons, who oversees the National Wildlife Federation’s climate change program, said the EIA’s analysis shows that industry claims that efforts to fight global warming would significantly boost energy cost
The climate change and energy bill passed by the House in June will bring somewhat higher energy prices for businesses and households and slow economic growth slightly by 2020, according to a draft report from the Energy Information Administration, a research arm of the Energy Department. The new report, which is scheduled to be released soon, looked at the legislation sponsored by Democratic Representatives Henry A. Waxman of California and Edward J. Markey Jr. of Massachusetts. It found that the bill’s provisions would cause electricity rates to rise 3 percent to 4 percent and gasoline prices to rise 23 cents a gallon by 2020, causing a fall in household consumption of between $21 and $235 a year. The legislation, which is now before the Senate, requires a 17 percent reduction in greenhouse gas emissions by 2020 and a roughly 80 percent reduction by 2050 compared to 2005 levels. The bill also requires utilities to produce a greater share of their energy from renewable sources, while
