Obama's bogus Clean Air Act study 

The House of Representatives is currently debating the  the Energy Tax Prevention Act on the House floor.The bill, co-sponsored by Reps. Fred Upton (R-MI) and Ed Whitfield (R-KY) would strip the Environmental Protection Agency (EPA) of the power to regulate greenhouse gasses pursuant to the Clean Air Act (CAA). Late last night, the Obama administration issued a formal veto threat of the legislation:
 

The CAA gives EPA the necessary tools to protect our families from a wide variety of harmful pollutants that cause asthma and lung disease – especially in children. Weakening these standards would allow more pollution in the air we breathe and threaten the health of Americans across the country. A recent report by EPA shows how important this landmark law has been in protecting public health.


Democrat after Democrat has cited this report. One problem: report  is completely bogus. In 1999 the Clinton White House conducted a similar study and found that the economic benefits of the CAA were $170 billion. The Obama White House figure? $2 trillion. In other words, the Obama White House wants you to believe the CAA got 1000% better in just 10 years. The Heritage Foundation’s Diane Katz explains how Obama pulled this off:

Long before the original CAA was enacted in 1963, industrial emissions were declining as a result of technological advances and efficiency improvements. And both factors, as well as others, will continue to drive environmental improvements regardless of regulation.

The research design is only one of myriad flaws underlying the EPA’s claims. In fact, 14 elements of the study that bear directly on the valuation of regulatory benefits are unreliable and constitute “major uncertainties” – i.e., differences in benefit estimates of $100 billion or more, according to the authors of the report.


Previous Heritage research found that EPA greenhouse gas regulation would destroy 800,000 jobs a year for several years due to high energy prices. And who do those high energy prices hit the hardest? the poorest Americans. A study released by the The American Coalition for Clean Coal Electricity found that the “27 million lower-income households earning between $10,000 and $30,000, representing 23% of U.S. households, will allocate 23% of their 2011 after-tax income to energy, more than twice the national average of 11%.”

The rich are simply not burdened by high energy costs the same way lower-income households are. In 2009, Dallas Burtraw of Resources for the Future told the House Ways and Means Committee: “[M]y analysis shows that households in the bottom decile spend about 24 percent of their disposable income on direct energy purchases (electricity, personal transportation, home heating),  while their counterparts in the top decile only spend 3.6 percent.”


Previous Heritage research found that EPA greenhouse gas regulation would destroy 800,000 jobs a year for several years due to high energy prices. And who do those high energy prices hit the hardest? the poorest Americans. A study released by the The American Coalition for Clean Coal Electricity found that the “27 million lower-income households earning between $10,000 and $30,000, representing 23% of U.S. households, will allocate 23% of their 2011 after-tax income to energy, more than twice the national average of 11%.”

The rich are simply not burdened by high energy costs the same way lower-income households are. In 2009, Dallas Burtraw of Resources for the Future told the House Ways and Means Committe: ““[M]y analysis shows that households in the bottom decile spend about 24 percent of their disposable income on direct energy purchases (electricity, personal transportation, home heating),  while their counterparts in the top decile only spend 3.6 percent.”

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