Heavy Ozone Regulation Hurts

A recent study by the National Association of Manufacturers found that the new ozone regulation from the Obama Administration could have a very high cost in jobs and to the economy. The NERA Economic Consulting report found that a stricter new ozone regulation could:

  • Reduce U.S. GDP by $270 billion per year and $3.4 trillion from 2017 to 2040.
  • Result in 2.9 million fewer jobs per year on average through 2040.
  • Cost the average U.S. household $1,570 per year.
  • Increase natural gas and electricity costs for manufacturers and households across the country.

New oil and natural gas production could be significantly restricted in parts of the country classified as “nonattainment” areas, limiting supplies of critical energy resources and potentially driving up costs for manufacturers and households.

The study found that restrictions to new natural gas production from tighter ozone regulations, in combination with the costs to reduce emissions, could:

  • Reduce the present value of GDP by nearly $4.5 trillion through 2040, result in a loss of 4.3 million job equivalents per year and cost households $2,040 annually.
  • Increase industrial natural gas costs by an average of 52 percent and electricity costs by an average of 23 percent over what they would be if the ozone standard was unchanged.

Heavy regulations like this one, cost too many jobs and wrecks the economy. Businesses will choose to go to other countries with friendlier business environments. Further negatively impacting our economy in the long run. We must look at the bigger picture and see the other side of the issue and understand that more harm than good is achieved through many existing regulations like this new one.

Comments (3)

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  1. CRS says:

    The EPA continues to do everything it can to damage the US economy. Only a regime change can correct this.

  2. SSY says:

    I have a large California data set. I’ve studied the data set. First note that ozone is low in the winter when deaths are high and high in the summer when deaths are low. Additional analysis finds no relationship between ozone level and deaths. It appears to be all pain (economic) and no gain (health). However there is considerable administrative gain to EPA and CARB.

  3. Lloyd Bentsen IV says:

    Exactly! The EPA always stands to gain from their actions. This will continue until we elect new leadership.