Americans Can Save More Money by Not Burning It: Study

Americans Can Save More Money by Not Burning It: Study
By Mark Drajem
October 10, 2014 2:45 PM EDT

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Climate change policy is often assumed to be a lose-lose proposition. Nations can pay now for expensive carbon-reduction policies, or they can pay later -- potentially a lot more -- through destructive climate-related events like storms, droughts and flooding.

In the U.S., however, that take may not be correct, according to a new study by the environmental group World Resources Institute. It says that improving buildings' energy efficiency, boosting the fuel-economy of automobiles and cutting leaks from the production and transport of natural gas can save money now and cut climate change later.

GDP growth and energy use historically tend to be coupled, moving up and down in near unison. The U.S. economy since the early 1990s has demonstrated that’s not necessarily the case, at least to the degree commonly assumed. “Climate change itself imposes economic costs,” the report states, “and reducing each ton of greenhouse gas emissions has a value that is not currently internalized in the U.S. economy.''

Efficiency -- either for buildings or vehicles -- is an obvious case in which cutting carbon means cost savings. Less energy use means lower fuel bills. Cutting methane leaks is another: the natural gas production and transport companies can make money selling the methane that doesn't leak into the atmosphere.

The WRI report also makes the case that cutting the emissions from electric-power generation will lead to a net health and climate benefit to the country. As the cost of generating power from natural gas and renewable energy is falling, coal no longer looks as cheap. And since it’s the most polluting fossil fuel, reducing its use may allow many Americans to breathe easier, literally and figuratively.

There’s plenty of work to do, WRI says. This chart shows how emissions from various sectors and pollutants stack up against the country’s stated emissions goals.

“The transition to a low-carbon future will be cheaper and easier with the right policy support,'' the WRI report concluded. “However, we are not suggesting that the United

States should limit its climate policies to just these win-win opportunities.''

How to build “the right policy support,” however, remains a question beyond anyone’s understanding.

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