Economic analysis suggests a national clean electricity payment program could bring $907 billion to the U.S. economy and support 7.7 million jobs by 2031

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BOSTON, September 9, 2021 /PRNewswire/ — Research released today by experts from Analysis Group, one of the world’s largest economic consultancies, suggests that a clean electricity payment program (CEPP) would have an impact significant and positive impact on the US economy. If Congress passes the CEPP as part of ongoing fiscal reconciliation negotiations, the United States could expect a $907 billion economic recovery; an increase of 7.7 million jobs; increase in tax revenue by $154 billion for federal, state and local governments; and investments in solar, wind and other resources have increased by nearly 628 gigawatts by 2031, according to the study’s authors.

CEPP could lead to a $907 billion economic stimulus for the United States and 7.7 million jobs.

Hard numbers derived from rigorous economic analysis are an essential tool for lawmakers as they debate proposals to meet the Biden administration’s goal of a 50% reduction in carbon emissions by 2030. The study, “Economic impact of a clean electricity payment program”, analyzes the level of investment and the evolution of the operation of the electricity system associated with the implementation of a national CEPP on a period of 10 years, including eligible investments and exploitation of resources. CEPP is designed to encourage an average of 80% low or zero greenhouse gas emissions by 2030.

“Our modeling analyzes region-specific clean electricity trajectories to estimate what a national impact might look like, with a focus on potential changes in the capital and operating costs of power generation resources. new and existing,” said the study’s lead author, Pavel Cheri, Vice President at Analysis Group. “The results show clear increases over time, compared to a business as usual scenario, in the development and exploitation of clean generation and storage resources, with substantial economic benefits to the country in the form of an increase in GDP and new jobs.”

Other takeaways from the study include:

  • A CEPP has the potential to drive immediate and ongoing investment in new power generation technologies, as retail suppliers are incentivized to meet performance targets. Economic benefits arise from the direct investment of dollars to build and operate PRPP-eligible resources, and from the incremental economic activity generated when these initial investments trickle down to the economy in the form of, for example, increased labor income expenditures from new work.

  • A CEPP would drive the deployment of solar, storage and onshore wind, while driving demand for newer and innovative technologies such as offshore wind and low- or zero-emission fuels. By 2031, the average annual electricity production from renewables would be about 1.5 times higher than the production from renewables in 2020, compared to a business as usual scenario, with substantial investments made in all regions of the country.

  • A CEPP would reduce risks in the energy and economic supply chain and provide the opportunity to create jobs in the energy sector in each region. The growth of CEPP-compliant technologies will lead to accelerated development of energy sources and technologies that rely primarily on domestic manufacturing and materials industries. This change would reduce supply chain risks and reliance on concentrated supply sectors and generate economic activity that would drive the supply and use of energy in all regions of the country.

In addition to the economic benefits, CEPP would increase the generation and use of electricity without emissions of greenhouse gases or other pollutants, a step in the right direction to improve air quality and meet climate goals. CEPP investments would also facilitate the decarbonization of the country’s electricity systems at a time when they will need to absorb additional demand from the electrification of the transportation and building sectors, and increasingly from the industrial sector.

The study was supported by a team of consultants from Analysis Group, including Principal Paul HibardMr. Darling and Principal Analyst Luke Daniels. Funding was provided by the Natural Resources Defense Council and Evergreen Collaborative.

To learn more about the capabilities of Analysis Group, visit AnalysisGroup.com

About the analysis group:
Analysis Group is one of the largest international economic consultancy firms, with more than 1,000 professionals in 14 offices in North America, Europeand Asia. Since 1981, we have provided expertise in economics, finance, healthcare analytics and strategy to top law firms, Fortune Global 500 companies and government agencies around the world. Our in-house experts, along with our network of affiliated experts from academia, industry and government, provide our clients with exceptional expertise of exceptional breadth and depth.

Contact:
Analysis group
Eric Seymour+1 978 273 6049
[email protected]

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