Washington, D.C. — A new analysis from the Center for American Progress shows how the House GOP budget plan would increase both gas and electricity prices for consumers as a result of cutting clean energy investments.
The data show that:
- Gasoline prices would increase 25 cents to 37 cents per gallon by 2035 as demand for oil increases due to the termination of federal electric vehicle affordability programs, fuel economy standards, and tailpipe emission standards.
- Americans would pay the oil and gas industry an additional $339 billion for gasoline and $75 billion for electricity by 2035.
- Repealing the financial support for buying new, used, or leased electric vehicles would keep between 22 million and 40 million more gasoline-powered cars and trucks on the road through 2035, as roughly one-third of families who would have tried to switch to an electric vehicle can no longer afford one.
“The House Republican tax plan to terminate federal clean energy investment would leave households buying so much more gasoline that it will push prices up,” said Trevor Higgins, senior vice president for Energy and Environment at CAP and author of the analysis. “It’s an indirect tax on energy, and it could raise gas prices up to 37 cents per gallon. This effort to cut off clean energy is a windfall for the oil and gas industry, and it comes at the expense of American families.”
This new analysis is based on modeling conducted by the energy systems analysts at Rhodium Group based on current proposals to repeal, end, or otherwise stymy clean energy investments and programs. All told, these policy choices are projected to cost the average household $2,400 in unnecessary gasoline expenditures over the next 10 years.
Read the analysis: “The House Republican Plan To Increase Gas and Electricity Prices” by Trevor Higgins
For more information, or to speak with an expert, please contact Sam Hananel at [email protected].