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Saturday, April 27, 2019

Green New Deal could cost over $90 Trillion

Study: Green New Deal Could Cost More Than $90 Trillion – Reason.com - Joe Seyton:

February 25, 2019 - "The Green New Deal — a brainchild of progressive Democrats... — has been controversial since it was released....  How much would it cost? At least $50 trillion and possibly in excess of $90 trillion, according to a report released ... by the American Action Forum (AAF).

"The AAF, a center-right think tank that focuses on economic issues, projected costs for six aspects of the Green New Deal: reworking the electricity grid in an environmentally friendly manner, revamping the nation's transportation network to reduce transmissions, and its guarantees of well-paying jobs, universal health care, affordable housing, and food security for each person in the U.S.

"One of the Green New Deal's goals is to meet '100 percent of the power demand in the United States through clean, renewable, and zero-emission energy sources' in the next 10 years. Achieving net-zero greenhouse gas emissions in this area would cost at least $5.4 trillion by 2029, the AAF says — not including another $387 billion per year for things like operations and maintenance.... [T]otal electricity costs would go up by 22 percent for consumers, the AAF says. Residential customers, who paid an average of $111.67 per month in 2017, would pay an average of about $300 more per year for electricity.

"The Green New Deal also proposes 'overhauling transportation systems ... to eliminate pollution and 19 greenhouse gas emissions from the transportation sector as much as is technologically feasible.' The AAF's estimate of the cost for this proposal assumes that high-speed trains would replace air travel.... Doing so would cost between $1.3 trillion and $2.7 trillion, the AAF estimates....

"The Green New Deal's jobs guarantee would also cost a considerable amount. The AAF based its estimates here on a 2018 report from the Center for Budget and Policy Priorities, which found that reaching full employment would involve putting roughly 10.7 million unemployed or underemployed people to work [which] would cost a total of $543 billion.... The AAF updated some of those numbers with 2019 data, and found that a federal jobs guarantee would cost $547 billion in 2019, and $6.762 trillion from 2020 to [2029].. Both of those numbers would rise if, with a guaranteed job waiting for them, many of those who aren't currently looking for work decide to join the labor force....

"The report also estimates that providing universal health care 'will cost roughly $36 trillion between 2020 and 2029.' The AAF simply built off a 2016 estimate of Sen. Bernie Sanders' (I–Vt.) Medicare for All Plan, which the Center for Health and Economy said would cost $34.67 trillion over 10 years. It's likely an accurate projection, roughly in line with a July 2018 Mercatus Center report, which said Medicare for All would cost the federal government more than $32 trillion over 10 years.

"The fifth aspect of the Green New Deal that AAF addresses is its guarantee of 'affordable, safe, and adequate housing." Simply housing the homeless could cost under $12 billion, AAF estimates.... But the Green New Deal also calls for 'upgrading all existing buildings ... to achieve maximal energy efficiency, water efficiency, safety, affordability, comfort, and durability, including through electrification.' Applying such costs to all housing units ... yields a potential cost of $1.6 trillion to nearly $4.2 trillion."

Read more: https://reason.com/2019/02/25/study-green-new-deal-could-cost-more-tha/

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