The Energy Information Administration (EIA) has released its final analysis of the Waxman-Markey climate legislation. The analysis states that from 2012-2030 the U.S. economy would lose approximately $566 billion. This amount is up significantly from the $492 billion EIA speculated in its draft analysis. Some of the report remains nearly identical to the original draft, including a 20 percent increase in electricity prices by 2030, to 12 cents per kw-h.
EIA concedes that several factors could not be included in their analysis. These factors include financing, allowance distribution to merchant coal plants, the strategic allowance reserve and how increases in investment in energy research and development could affect prices. When asked about the analysis, aides to leading Democrats responded by focusing on one of two areas: (1) the impact of standing still on climate change, or (2) how the clean energy sector would grow exponentially if legislative action is taken.