ALBUQUERQUE — Today, the Rio Grande Foundation released a new study authored by its president Paul Gessing based on research provided by energy expert Dr. Timothy Considine of the University of Wyoming.
The study which analyzed the impact of New Mexico’s Renewable Portfolio Standard (RPS) finds that the law will decrease New Mexico’s economic growth by $444 million and cost the economy 3,500 jobs by 2020.
The study, “New Mexico’s Renewable Portfolio Standard: An Evaluation of its Impact on the State Economy,” details the impact of RPS on electricity prices, job creation, and economic output through 2040. The study serves as a reminder that despite modest benefits of RPS, state lawmakers cannot ignore the economic implications for their constituents.
Renewable Portfolio Standards (RPS) exist in 29 states and the District of Columbia, requiring that a percentage of electricity be generated by wind, solar, and other forms of renewable energy in order to reduce greenhouse gas emissions.
The study accounts for not only the costs of the law but also the benefits. This year, for example, Dr. Considine finds that New Mexico’s RPS reduces carbon dioxide emissions by more than 4 million tons, infuses $178 million into the state economy, and is responsible for 2,500 new jobs. Those benefits, however, are dramatically-outweighed by its costs.
Additional findings for the Land of Enchantment:
- By 2020, RPS policies will increase New Mexico electricity costs by almost $206 million annually.
- The study finds that electricity prices will jump by 7 percent that year alone.
Said Rio Grande Foundation president Paul Gessing.“New Mexico’s economy faces serious challenges. While so-called ‘renewables’ may be part of the solution, mandating them under state law does much more harm than good.”