A new study released today by the Consumer Energy Alliance (CEA) indicates that a low carbon fuel standard (LCFS) in Northeast and Mid-Atlantic states could result in doubling gasoline prices and other negative economic impacts.
The study, “Analysis of the Economic Impact of a Regional Low Carbon Fuel Standard on Northeast/Mid-Atlantic States,” estimates that an LCFS over ten years would result in the loss of 147,000 jobs, decrease disposable income by $28.8 billion, and result in a combined negative economic impact of $306 billion.
Eleven Northeast and Mid-Atlantic (NE/MA) states have been evaluating the implementation of a LCFS through an initiative coordinated by the Northeast States for Coordinated Air Use Management (NESCAUM), which released a final report in August of last year – an analysis that CEA believes was “lacking in depth, methodology and analysis, and failed to account for the region’s energy needs.”
CEA Executive Vice President Michael Whatley said their study found that “NESCAUM relied on flawed assumptions about the market’s ability to secure an adequate supply of biofuels, the infrastructure needed to support that demand, and the projected replacement of existing vehicles. These findings further support an analysis conducted by IHS-CERA in October 2011 that found NESCAUM’s economic analysis to be deeply flawed and riddled with unrealistic assumptions regarding the availability and price of advanced biofuels, electric and natural gas powered vehicles during the timeframe of the potential LCFS mandate.”