No. There have been studies promoted by supporters of the proposal suggesting that the proposal’s mandated investment in renewable energy sources will increase the number of jobs in the state. This analysis ignores the costs of the mandate; a new study from the Mackinac Center and The Beacon Hill Institute, however, uses a computable general equilibrium model that considers both the investment and the costs. The study shows that the renewable energy standard will cost the state 10,514 jobs when fully implemented in 2025.
For more information, see:
The Projected Economic Impact of Proposal 3 and Michigan’s Renewable Energy Standard
Analysis: 25 by 2025 ‘Green Energy’ Studies Ignore Costs
What’s in a Number? Job Projections Inflated as ‘Job Years’
Michigan trades both nationally and internationally. This trade helps residents stretch their dollars further. In this case, purchasing coal helps keep the costs of energy low for Michigan residents and businesses, allowing them to keep more of their money for other things.
Besides, the people of Michigan probably do not need to worry that West Virginia will exert undue influence over Michigan policy by withholding coal.
The state and federal government have already been pushing alternative energy with billions of taxpayer dollars. But this government support is not a sustainable economic advantage. There’s always another state or national government that can up the ante and subsidize competing businesses. Your own taxpayers suffer the consequences.
Add into this the risk of cronyism among clean energy subsidy-seekers and politicians, making it less likely that policies supporting this industry would result in economic growth.
As these utility companies are forced to invest in less cost-efficient power generation facilities, rates will increase, resulting in a projected 10,540 fewer jobs in 2025 than there would have been without a clean energy mandate.
We expect that this mandate will increase rates by $180 for residential ratepayers, $1,630 for commercial ratepayers, and $53,580 for industrial ratepayers when it is fully implemented. This is approximately a 16 percent rate hike.
No. The Mackinac Center-Beacon Hill study estimates that Proposal 3 would make electricity prices 16.2 percent higher in 2025 than they would have been if there had been no renewable energy mandate (including the one passed by the Michigan Legislature in 2008). Even if the cap were completely effective, it would lower the projected rate increase from 16.2 percent to 13.8 percent. And the cap may not prove effective. It may fail to cover all of the costs of the mandate, and it doesn't account for taxpayer subsidies to renewable energy.
