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InsiderOnline Blog: October 2008

Going Green and Broke

A recent report by Amanda Berg of the National Center for Policy Analysis provides some details on how the EPA’s proposal to regulate greenhouse gases under the Clean Air Act would impact energy prices:

[T]he proposed EPA rule would cause a shift from coal — cur­rently used to generate half of the do­mestic electricity supply — to natural gas. Due to the limited domestic sup­ply of natural gas and the moratorium on production from reserves on the Outer Continental Shelf, more natural gas would be imported, reducing U.S. energy security. According to a study by Science Applications International Corporation, an increase in demand for natural gas would cause its price to skyrocket, raising electricity prices:

• Natural gas prices could increase by as much as 146 percent.
• Electricity prices could increase 129 percent.
• A two-thirds reduction in coal-fired electric power generation would lower gross domestic product (GDP) by $371 billion annually, say Pennsylvania State University researchers.

Posted on 10/20/08 05:27 PM by Alex Adrianson

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