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Why You Should Mourn Implementation of the Paris Climate Agreement

by E. Calvin Beisner

April 12, 2016

COP 21 cropped

The climate agreement reached in Paris last December will become effective on Earth Day, (Friday, April 22) with a ceremony at the United Nations headquarters in New York City.

We’ll all hear of heroic world leaders who joined together in Paris to ensure the planet’s survival. The Obama administration will try to enforce the agreement (which meets all the legal criteria of a treaty though the President chooses not to call it that to evade Senate disapproval) by imposing the Environmental Protection Agency’s controversial “Clean Power Plan” (CPP), which aims to reduce carbon dioxide emissions from U.S. power plants by 32% by 2030, and other onerous regulations that will drive up utility rates.

What we won’t hear much about are the Americans harmed by the rising energy prices the policies cause.

The higher rates will affect all Americans, but the impoverished and working poor will suffer most. Many already experience “energy poverty,” in which a household spends 10 percent or more of its income on household energy costs (excluding gasoline and other transportation-related costs). Many others will be driven into it.

A study by scholars at the Massachusetts Institute of Technology found that a policy imposing a CO2 tax or cap-and-trade regime (and the CPP allows states to use either or both) would impose higher costs nationwide. States that currently get more energy from fossil fuels would face smaller increases, and those that currently get less would face larger increases.

The lower you push CO2 emissions, the more expensive it is to generate electricity. Not surprisingly, richer people can afford more expensive things than poorer people. That includes energy. Consequently, the poorer you are, the less likely you are to choose more expensive energy sources.

Richer states, like the Pacific Coast, New England, and New York (which averaged $46,954 per capita in income in 2012, one-tenth more than the national average), have already pushed their CO2 emissions down somewhat. Poorer states, like South Central States, Texas, and Mountain States (which averaged $36,854 per capita in income, 14% lower than the national average and more than a fifth lower than those richer states), have not.

Because the poor spend a higher percentage of their incomes on energy in the first place, an increase in energy prices—which implementation of the CPP and the Paris climate agreement would cause—will cause disproportionately heavy harm to them, ironically functioning as if it were a regressive tax.

Consider examples from a few states, according to data from the U.S. Department of Energy’s Energy Information Agency:

  •  Although on average Colorado families spent just 8% of their after-tax incomes on energy in 2013, the 879,000 Colorado families with income under $50,000 per year spent more than twice as much, an average of 17%, and the 128,000 families earning under $10,000 per year spent more than seven times as much, an average of 57%. For the average family, a 10% increase in energy prices would push energy costs to 8.8% of after-tax income; for the family earning under $10,000, that same increase in energy prices would push energy costs to a crushing 62.3%.
  • While on average Florida families spent 10% of their after-tax incomes on energy in 2013, the 3.9 million households with annual income under $50,000 spent nearly twice as much, an average of 19%, and the 587,000 families earning under $10,000 per year spent nearly seven times as much, 68%. For the average family, a 10% increase in energy prices would push energy costs to 11% of after-tax income; for the family earning under $10,000, that same increase in energy prices would push energy costs to 74.6%.
  • The average Iowa family spent 11% of after-tax income on energy in 2013. The 600,000 Iowa families with under $50,000 in annual income spent on average 19%, while 80,000 Iowa families with annual incomes under $10,000 spent on average 69%—more than six times the average. For the average family, a 10% increase in energy prices would push energy costs to 12.1% of after-tax income; for the family earning under $10,000, that same increase in energy prices would push energy costs to 75.9%

Data for these and twelve other states are summarized in the Cornwall Alliance’s A Call to Truth, Prudence, and Protection of the Poor 2014.”

To comprehend the impact of EPA’s proposed new rule on America’s poorest, just imagine what it would be like to have to spend three-fourths of your household income on energy, leaving only one-fourth for food, clothing, shelter, transportation, health care, education, and everything else combined.

That’s why we should mourn, not celebrate, implementation of the Paris climate agreement on Earth Day.
This article was originally published on Townhall.com.

Featured image courtesy of Becker1999/Flickr CC.

Dated: April 12, 2016

Tagged With: Clean Power Plan, CO2, COP-21, Energy Poverty, Energy Prices, Paris climate agreement
Filed Under: Bridging Humanity and the Environment, Climate & Energy, Climate Policy, Developmental Economics, Economics, Poverty & Development, Energy Options, Energy Policy, Energy Poverty

About E. Calvin Beisner

Dr. Beisner is Founder and National Spokesman of The Cornwall Alliance; former Associate Professor of Historical Theology & Social Ethics, at Knox Theological Seminary, and of Interdisciplinary Studies, at Covenant College; and author of “Where Garden Meets Wilderness: Evangelical Entry into the Environmental Debate” and “Prospects for Growth: A Biblical View of Population, Resources, and the Future.”

Comments

  1. David Berryman says

    April 13, 2016 at 12:15 am

    We should also note that these impositions will roll out on the birthday of Vladimir Lenin. How appropriate.

    Reply
  2. George Manson says

    April 14, 2016 at 2:56 pm

    Greatest Fraud in history of human kind.

    Reply
  3. lesley hull says

    April 19, 2016 at 5:27 pm

    Why are so many otherwise intelligent people reluctant to face the reality of this
    diabolical deception?

    Reply

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Future Speaking Engagements

May 23, 2025 – Grand Rapids, MI

GR.Church, 4525 Stauffer Avenue Southeast, Grand Rapids, MI 49508

Dr. E. Calvin Beisner, Cornwall Alliance President, and Steve Goreham, Cornwall Alliance Board Member, will hold a symposium on Sustainable Energy, Climate Change, and the costs to YOUR life.  For tickets and more information, click HERE.

June 18-21, 2025–Dallas, TX

Cornwall Alliance will be a host of the Association of Classical Christian Schools’ (ACCS) annual Repairing the Ruins conference in Dallas, TX, and will have an exhibit booth.

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September 19-20–Arlington, VA

Dr Beisner will represent the Cornwall Alliance at the fall meeting of the Philadelphia Society and will have a literature table.

Attendance is for Society members and invited guests only. To inquire about an invitation, email Dr. Cal Beisner: Calvin@cornwallalliance.org.

September 26-27– Lynchburg, VA

Dr. Beisner will be speaking at the Christian Education Initiative Annual Summit, “Advancing Christ’s Kingdom Through Biblical Worldview Education.” 

Details and registration can be found HERE.

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