December 23, 2010

Why would energy companies support CO2 regulation?

By Why would energy companies support CO2 regulation?

Author:  Damien M. Schiff

The answer to that question comes in an excellent editorial in today's Wall Street Journal.  The piece responds to a letter to the editor sent a few weeks ago to the paper by 8 CEOs of major US energy companies, stating that they had no problem with EPA's plans to regulate CO2 under the Clean Air Act, and that they were ready, willing, able, and quite happy to comply.  That seems a little surprising; after all, why would companies want to be regulated?  Well, the Journal nails it:  the companies want to be regulated because they will earn more profits, and their more fossil-fuel dependent competitors will be run out of business.  Now, whether that's a good outcome, it's not my place to say; but the fact that these CEOs' companies stand to gain considerably by EPA regulation should provide the needed grain of salt to be taken when crediting their contentions that EPA regulations are good for the energy sector generally.

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