How the Clean Power Plan’s Repeal Undermines Regulatory Analysis
View on The Regulatory Review website"Why the difference? The answer is complicated. But as Richard Newell, President of Resources for the Future, has noted, two changes in assumptions generally drive much of the difference in the results. First, the Obama Administration had included global benefits from curbing climate change in its calculation, whereas the Trump Administration counted only benefits directly linked to the United States. Second, the Trump Administration included a 7 percent discount rate for future benefits, a rate higher than any rate used by the Obama Administration. Using this assumption has the effect of reducing the monetary estimate of benefits that occur in the future, benefits that are discounted to compare them with costs that occur in the present."
