State carbon abatement policies could generate $1 trillion in benefits

(Columbus, OH) – On Monday, Scioto Analysis released an analysis of options for reducing carbon emissions in the state of Ohio. Analysts found that renewable portfolio standards, cap-and-trade, or carbon tax approaches could generate up to a trillion dollars in economic benefits for the state through 2050.

Benefits would be accrued in the form of reduced health risks, less spending on infrastructure maintenance, and avoided cases of food insecurity driven by high carbon emissions.

“In this analysis, we found that stronger renewable portfolio standards, a cap-and-trade program, or a carbon tax would all lead to a reduction in economic impacts in the next thirty years by $800 billion to $1 trillion,”  said Aayush Nema, lead analyst for the project. "These numbers are consistent with extremely conservative values for the social cost of carbon and its discount rate. Moreover, each of our policy recommendations are consistent with bipartisan bills and policies implemented or supported by utility providers in states similar to Ohio.” 

This analysis was released just weeks after the Biden Administration released goals to reduce U.S. carbon emissions to 50% of 2005 levels by 2030, the onus for achieving which might fall on individual states.

“If Biden’s plans for carbon emissions will look anything like the Obama Administration’s, requirements to find a way to reduce carbon emissions will fall in the lap of states,” said Scioto Analysis Principal Rob Moore. “This analysis shows the state of Ohio has three great options for abating carbon.”

For more information, contact Rob Moore, principal, Scioto Analysis, (614) 743-1840, rob@sciotoanalysis.com