Weighing the Climate Impact of the Stimulus Bill

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Today Greenpeace released a report indicating that the House’s $819 billion stimulus bill is a net environmental gain by a longshot. The bill’s energy efficiency and conservation provisions alone could reduce greenhouse gas emissions by more than 61 million metric tons annually, the equivalent of electricity use in 7.9 million American homes. Meanwhile, the worst-case-scenario for the bill’s transportation provisions would reduce the overall carbon benefits by only 5 million tons annually. The report, which was written by the respected energy consulting firm ICF International, apparently didn’t examine other provisions in the bill, but given that transportation is by far the biggest environmental white elephant, the overall package looks surprisingly eco-friendly. Ironically, the real downside won’t kick in unless the stimulus succeeds in reviving the economy, causing consumption to rise. Yet if the bill starts rebuilding the economic system into something sustainable, we’ll be better off than where we started.

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