By Michael Bastasch, Daily Caller
The Environmental Protection Agency’s climate rules aimed at phasing out coal-fired power in favor of low-carbon fuels will come at a high cost, according to a newly released report.
Over the next two decades, the EPA’s rules to fight global warming will cost the economy $2.23 trillion, raise energy prices and lower families’ incomes.
Using economic models based on the federal government’s National Energy Model System, the conservative Heritage Foundation found that, by the end of 2023, EPA climate regulations will cost the U.S. nearly 600,000 jobs and reduce a family of four’s income by $1,200.
EPA rules would also raise energy prices and cost the economy $2.23 trillion from 2015 to 2038.
“Higher energy prices as a result of the regulations will squeeze both production and consumption. Since energy is a critical input for most goods and services, Americans will be hit repeatedly with higher prices as businesses pass higher costs onto consumers,” writes Nick Loris, a Heritage Foundation economist and co-author of the report.
“However, if a company had to absorb the costs, high energy costs would shrink profit margins and prevent businesses from investing and expanding,” Loris adds. “The cutbacks result in less output, fewer new jobs, and less income.”
Last summer, President Obama unveiled his Climate Action Plan, which heavily relied on capping carbon dioxide emissions from coal-fired power plants. Federal regulators moved quickly to craft rules that would limit power plant emissions, eventually publishing such a rule earlier this year.