Biden's Climate Agenda: A Cost-Saving Measure for American Consumers

President Joe Biden's climate agenda has been criticized for potentially increasing energy costs, but White House economists argue that it will not only cut carbon emissions but also bring down costs for consumers. The economists, led by Heather Boushey, Noah Kaufman, and R. Daniel Bressler, write that the climate and clean energy provisions in Biden's budget bill and a bipartisan infrastructure bill will increase energy efficiency, cut electricity costs, and protect consumers from the "high costs of inaction" on climate. They point to the potential costs of not responding to climate change, including the $120 billion per year in damages from extreme weather and climate events over the past five years.

Key Takeaways:

• The White House economists estimate that the climate and clean energy provisions in Biden's budget bill and bipartisan infrastructure bill will increase energy efficiency, cut electricity costs, and protect consumers from the "high costs of inaction" on climate.
• The economists argue that the costs of not responding to climate change will be steep, including the $120 billion per year in damages from extreme weather and climate events over the past five years.
• Democrats' clean energy tax credits and clean electricity program will keep electricity costs low for consumers as utilities switch from fossil fuel-powered energy to cleaner sources.
• The economists write that direct subsidies to energy producers can limit the costs of clean energy to consumers and accelerate the transition to a carbon-neutral economy.
• Well-targeted federal funding, such as consumer rebates for home retrofits, can incentivize investments that provide net benefits to the country while enabling American families to consume less energy--reducing energy bills in the process.
• The economists cite Department of Energy analysis showing that 29 new or updated appliance standards enacted between 2009 and early 2015 were projected to save consumers $480 billion between 2009 and 2030.
• Biden is trying to convince two moderate Democratic senators, Joe Manchin and Kyrsten Sinema, to support his $3.5 trillion budget bill.
• The President met separately with both senators at the White House on Wednesday.

Statistics:

• $120 billion per year: The damages from extreme weather and climate events in the United States over the past five years.
• 29: The number of new or updated appliance standards enacted between 2009 and early 2015.
• $480 billion: The savings that consumers are projected to realize between 2009 and 2030 due to energy-efficient appliances.
• $3.5 trillion: The proposed budget for Biden's budget bill.

Sources:

• CNN Blog Post by White House economists Heather Boushey, Noah Kaufman, and R. Daniel Bressler
• Department of Energy analysis cited in the CNN Blog Post