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Meeting Maryland’s Greenhouse Gas Reduction Goals

CIER and partners from Towson University have completed a pair of studies investigating potential impacts from Maryland’s greenhouse gas mitigation policies on the state’s manufacturing sector, employment and electricity reliability. These studies, called for by the Greenhouse Gas Emissions Reduction Act of 2009, provide citizens, businesses and public officials with new information on the State of Maryland’s goal to reduce greenhouse gas emissions 25 percent by 2020. This research contributes to the history of work CIER has completed in the topic of climate and energy policy.

 

Reliability Cover

Electricity Reliability Impacts from Maryland’s Climate Action Plan

We find that, with implementation of Maryland’s Climate Action Plan, electricity reliability in the state will improve. Electricity reliability is defined as having sufficient supply (generation capacity, imports and demand management) capable of meeting demand (total electricity load). Improvements in electricity reliability will occur as a result of (1) more supply from new renewable capacity (e.g., offshore wind) and (2) less demand due to improvements in end use efficiencies.

 
Manufacturing Cover

Manufacturing Costs, Employment & Economic Effects from Maryland’s Climate Action Plan

We find that Maryland’s Climate Action Plan will create neither a significant increase in manufacturing production costs nor a significant decrease in Maryland manufacturing jobs. There is the potential for green job growth in Maryland as a result of policy-driven demand for skills in energy conservation, alternative energy supply, and greenhouse gas emissions reduction technology. Furthermore, we find that economic impacts induced by changes in the manufacturing sector will be minimal. We expect manufacturing in Maryland, and its economy as a whole, to be agile enough to make the necessary changes in technologies and business practices to absorb what has been portrayed as a policy-induced shock on the economy. At worst, the CAP will become an indistinguishable part of a larger and longer-term trend of declining manufacturing employment in the state. At best, the CAP will generate new business opportunities and jobs.