Coal-fired power plant closures could more than double under the Obama administration's climate rules than under existing regulations, with power sector carbon dioxide emissions possibly falling by about one-third, a federal analysis found.
U.S. Energy Information Administration case studies also suggest average retail electricity prices may spike 3 percent to 7 percent higher within the next decade. Cumulative U.S. gross domestic product may take a hit of up to 0.25 percent by 2040, subject to future policy decisions, the agency added.
The EIA analyzed potential effects of the Clean Power Plan, a carbon standards policy proposed by the Environmental Protection Agency last summer. The regulations—a hallmark of President Obama's environmental policy—would seek to reduce carbon emissions, which the EPA and some scientific studies have attributed to climate and health drawbacks.