Here’s one of the first independent analysis done on the American Power Act in the Senate, and I thought it would be a good thing to share. Link
The Economic, Employment, Energy Security, and Environmental Impact of the Proposed American Power Act
May 20, 2010
|Contact:||Katharine Keenan||(202) 454-1334|
Washington—On May 12, Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) released details of the proposed American Power Act, a comprehensive energy and climate change bill under development since last fall. With US unemployment just below 10 percent and a ruptured well pouring oil into the Gulf of Mexico, the Senators promised that the legislation would protect the environment and reduce US dependence on foreign oil while creating jobs and increasing US economic competitiveness at little cost to consumers.
A new study by the Peterson Institute for International Economics provides the first comprehensive assessment of the draft legislation’s ability to achieve these goals. Assessing the American Power Act,authored by visiting fellow Trevor Houser along with Shashank Mohan and Ian Hoffman, employs the Department of Energy’s National Energy Modeling System to forecast the legislation’s economic, employment, energy security, and environmental impact through 2030. Key findings of the study (summarized in attached table [pdf]) include:
Energy Sector Changes: The American Power Act would significantly alter the way the United States produces and consumes energy. The share of total energy demand met by fossil fuels would fall from 84 percent today to 70 percent in 2030. Renewable and nuclear energy would grow from 8 percent each of US energy supply today to 16 and 14 percent respectively in 2030.
Energy Security Implications: The Act would reduce US oil imports by 33 to 40 percent below current levels and 9 to 19 percent below business-as-usual by 2030. This would cut US spending on imported oil by $51 to $93 billion per year and, by lowering global oil prices, reduce oil producer revenues by $263 to $436 billion annually by 2030.
Environmental Impact: The Act would establish an economy-wide carbon price starting at $16.47 per ton in 2013 and growing to $55.44 dollars per ton in 2030, reducing greenhouse gas emissions from covered sources 22 percent below 2005 levels by 2020 and 42 percent by 2030.
Employment Effects: The Act prompts $41.1 billion in annual electricity sector investment between 2011 and 2030, $22.5 billion more than under business-as-usual. This stimulates US economic growth and job creation in the first decade, increasing average annual employment by about 200,000 jobs.
Impact on Consumers: By pricing carbon, the American Power Act raises the price of fossil fuels for businesses and consumers. Households see an average 3 percent increase in electricity rates and 5 percent increase in gasoline prices between 2011 and 2030. Energy efficiency improvements largely offset these energy price increases—households see somewhere between a $136 increase and a $35 decrease in average annual energy expenditures, depending on future improvements in vehicle efficiency.