Economic Impact of a Clean Electricity Payment Program
White Paper, 2021
The adoption of a Clean Electricity Payment Program (CEPP) could have a significant, positive impact on the US economy, according to an independent study by an Analysis Group team. The study authors, led by Vice President Pavel Darling and including Principal Paul Hibbard and Senior Analyst Luke Daniels, determined that a national CEPP would result in a $907 billion economic boost; an increase of 7.7 million jobs; increased tax revenues of $154 billion for federal, state and local governments; and investments in solar, wind, and other resources increased by nearly 628 gigawatts by 2031. Hard numbers derived from economic analysis are essential tools as legislators debate proposals to meet the Biden Administration’s goal of a 50% reduction of carbon emissions by 2030.
In addition to the economic benefits, the authors found that a CEPP would increase the production and use of electricity without greenhouse gas emissions or other pollutants, a step in the right direction for improving air quality and meeting climate goals. CEPP investments would also facilitate decarbonization of the nation’s electricity systems at a time when they will need to absorb additional demand from electrification of the transportation and building sectors, and increasingly the industrial sector.
The study, “Economic Impact of a Clean Electricity Payment Program,” was prepared at the request of the Natural Resources Defense Council and Evergreen Collaborative.