Anderson Economic Group Work

Editorial: State should prep for costly power plan

Detroit News, April 21, 2016

The Clean Power Plan would significantly harm Michigan’s economy beyond spiking electricity bills. The behemoth energy regulations could hurt personal incomes and slow the economy generally.

That shouldn’t be a surprise to anyone. But there have been only a few bright spots in the economy since the Great Recession, and America’s energy economy and automaking have been among them.

That’s been important especially for Michigan, which relies so heavily on a manufacturing core that needs an affordable, reliable energy supply.

The McKinsey Global Institute found a robust energy sector could be one of the few game-changing opportunities for the country’s economic renewal and growth. Encouraging shale gas and oil production could add as much as $690 billion a year to GDP and create up to 1.7 million jobs across the economy by 2020.

But Michigan must prepare for the power rules, especially since an evenly divided Supreme Court will likely uphold them.

A report released this week by the Niskanen Center in Washington, D.C., and conducted by Anderson Economic Group of Lansing, analyzed potential scenarios the state could enact to comply with the federal plan.

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