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Report: Cost of Climate Change to Auto Industry Drastically Exceeds Cost of New EPA Standards
A new report refutes the argument that the Environmental Protection Agency’s (EPA) proposed carbon pollution regulations will create an economic catastrophe. The study examines the impact of the EPA rules on the automotive industry and finds that compliance would only cost $7 per car — less than one percent of the cost of a new vehicle. The report from the Business Forward Foundation, entitled “Severe Weather And Manufacturing In America: Comparing The Cost of Droughts, Storms, And Extreme Temperatures With the Cost of New EPA Standards,” compares the impact of climate change-related extreme weather events to the automobile industry and concludes that weather-related shutdowns in a single assembly plant could cost up to $1.25 million for every hour of lost production.
“When compared to the hours of production auto assembly plants and parts suppliers lose each time severe weather disrupts their supply chains, the cost of EPA standards to address severe weather (from steel and glass through final assembly, less than $7 per car) are minute,” states the report.
The report finds that it isn’t just extreme weather in the United States that can impact auto plants, but severe weather abroad in countries vulnerable to man-made global warming that can disrupt the supply chain. For example, it took only 19 days for floods in Thailand to shut down auto plants in the Midwest.
In addition to the minor cost to the auto industry of the proposed EPA regulations, another new report finds that states with Renewable Portfolio Standards only raised electricity rates by an average of less than two percent and that renewable energy requirements can actually stabilize electricity rates which would benefit the auto industry.
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