Tuesday, June 3, 2014

Chamber of Commerce cost projections inflated

Recall several recent posts on the new EPA CO2 standards. Krugman gave the US Chamber of Commerce study the benefit of the doubt and showed how even if those costs were true it would only be 0.2% of GDP, a bargain. Another post showed how a regional US area has already implement CO2 reductions at lower than projected costs. A post of Rikin's response to the new regulations showed that the IoT will generate over $14 trillion in savings compared with the Chamber's estimated $400 billion in in the same period. So now what?

It turns out that the Chamber's original cost projections were based on the EPA cutting CO2 emissions by 42% instead of the actual 30%. So reduce their cost projections by that factor and the offset in savings through the IoT and RE is even far better than the already giant discrepancies noted above. Any business person will tell you that if you get a return of 32 times what you invest it is one of the best deals they've every seen. Unless that business person is a regressive stuck on a dying energy regime and infrastructure and refuses to accept reality.

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