Litany of errors mars analysis of bill to enact recommendations of global warming task force

Wednesday, December 16, 2009

From a news release issued by the coalition for Clean, Responsible Energy for Wisconsin’s Economy (CREWE):

(MADISON, Wis.)—The coalition for Clean, Responsible Energy for Wisconsin’s Economy (CREWE) on Tuesday released a fact sheet detailing the errors with the Wisconsin Policy Research Institute’s (WPRI) November 12th report on the adverse economic effects of the Governor’s Task Force on Global Warming recommendations.

“The WPRI report is so wildly flawed that it has no place in any legislative debate on the task force recommendations,” said Thad Nation, executive director of CREWE. “Not only does the report analyze many policies that aren’t even included in the Clean Energy Jobs Act, but it takes a piecemeal approach, failing to analyze the cumulative effect the policies will have on our state.”

Among the errors included in the report, titled “The Economics of Climate Change Proposals in Wisconsin”:
• 8 of the 13 policies analyzed aren’t included in the Clean Energy Jobs Act
• Models policies that would impact the state’s general fund, despite the fact that the Clean Energy Jobs Act includes no tax increases
• Ignores the fact that low carbon fuels will be produced in Wisconsin and other
Midwestern states, while conventional gasoline is largely imported from overseas
• Fails to take into account decreased electricity demand due to energy efficiency and conservation investments outlined in the recommendations.

In addition, the authors of the report used a “black box” economic model to come to their conclusions – meaning the reader is only given the inputs and outputs, without any knowledge of how the statistical analysis was done. In order to allow others to properly analyze the report’s conclusions, the model that was used should be made publicly available for review.