Koch, Wendy. EPA proposes strict emission limits on new power plants. USA Today.com
[Internet]. Sept
20,2013. Available from:
EPA Administrator Gina McCarthy states, "Americans have a moral obligation to the next generation." McCarthy is referring to the fact that our generation must preserve the environment for the future. McCarthy bases her comment on the fact that coal-fired power plants are the largest source of carbon emissions, accounted for 37% of large industry carbon dioxide emissions. Koch uses comments from the Obama Administration to detail the "hidden costs" of coal-fired units. These hidden costs include global warming, excess greenhouse gases (such as sulfur dioxide), acid rain, and future health issues.
In my opinion, Koch does not capitalize on the the opposing view. Coal-fired power plants are America's largest source of energy, contributing 24% of all energy consumed nationwide. I often think of an analogy of a steam engine freight train and a hybrid car. Obviously, a hybrid car produces far less carbon emissions than the dirty coal-fired train. But a train can more efficiently transport a load 10,000 times greater than the load capability of a car. In this analogy, the train represents the coal-fired power plants and the hybrid car represents a low emission energy source, such as wind power. Also, Koch states that the average power plant already captures 90% of their carbon emissions. Putting a weight limit rather than a percent captured limit on power plants will severely hinder the large coal plants, which America relies so heavy upon. Koch ends the article with a comparison quote from St. Louis Peabody Energy: "[The carbon cap limit] will cause consumers' power bills to skyrocket over time and cause more pain at the plug than Americans have experienced at the pump."
Questions:
1. If the EPA put this proposal into effect in 2014, how would stock markets react to the decrease in power plant revenue (assuming the carbon cap would force some plants out of service)?
2. Are Americans willing to pay higher electricity bills for increased environmental protection?
3. If EPA decides to revoke the act, what are the future consequences of the current power plant emissions?