Report: Green New Deal Would Cost More Than $70,000 Per U.S. Household in First Year

Ilona Schumicky | July 31, 2019 | 2:48pm EDT
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(Sean Gallup/Getty Images)

( – A new study by the Competitive Enterprise Institute (CEI) shows that the Green New Deal, a federal plan to allegedly combat global warming, would cost American families – in the five states studied -- more than $70,000 for electricity, upgrades in vehicles, housing, and shipping in the first year of the plan’s operation.

The Green New Deal (H.R. 109 and S. 59) essentially is a massive stimulus program to implement green initiatives across the board in the United States. It is based upon the national New Deal programs of the Roosevelt administration in the 1930s, and it is supported by some liberal Democrats, including Rep. Alexandria Ocasio-Cortez (D-N.Y.), Rep. Rashida Tlaib (D-Mich.), and Rep. Ilhan Omar (D-Minn.).

It is also backed by liberal environmental groups, such as Greenpeace, Friends of the Earth, and the Sierra Club.

(Lukas Schulze/Getty Images)

In the study, experts at CEI and Power the Future analyzed five states -- Florida, New Hampshire, New Mexico, Alaska and Pennsylvania -- that have diverse climates, geography, economies and population to help to understand the proposal’s broader national impact.

Using existing greening cost data, CEI and Power the Future looked at Green New Deal (GND) costs in four categories: additional electricity demand; costs associated with shipping and the logistics industry; new vehicles; and building retrofits.

The results showed that the GND “would cost a typical household more than $70,000 in the first year of implementation, approximately $45,000 for each of the next four years, and more than $37,000 each year thereafter.”

In Alaska, estimated costs are much higher: more than $100,000 in year one, $73,000 in the subsequent four years, and more than $67,000 each year thereafter,” reported CEI.

(CEI and Power the Future.)

“The Green New Deal is a radical blueprint to de-carbonize the American economy by refashioning how we grow food, move people and goods, source and distribute electricity, and build the structures where we live, work, and play,” said CEI President Kent Lassman.

“Our analysis shows that, if implemented, the Green New Deal would cost for American households at least tens of thousands of dollars annually on a permanent basis,” he said. “Perhaps that’s why exactly zero Senate Democrats, including the resolution’s 12 co-sponsors, voted for the Green New Deal when they had the chance.”

(Getty Images)

Power the Future Executive Director Daniel Turner said, "This study only calculates a fraction of the cost of Alexandria-Ocasio Cortez's radical plan, which amounts to a socialist free-for-all with no regard for the American taxpayer.”

“No family should be forced to pay tens of thousands of dollars in the first year alone to fund AOC’s ideological wish list,” said Turner.  “Thankfully, Americans see through the Green New Deal and are beginning to fight back."

Looking at one cost element, energy/electricity, CEI noted the work done by the energy research firm Wood Mackenzie. This group “estimates that the greening of the U.S. power sector would cost approximately $35,000 per household and take 20 years,” reported CEI. “Wood Mackenzie estimate a total price tag of some $4.7 trillion, including around $1.5 trillion to add 1,600 gigawatts of wind and solar capacity and $2.5 trillion of investments in 900 gigawatts of storage.”

“Another $700 billion is estimated for new high transmission power lines to move that electricity from sun-drenched deserts and windswept plains to the urban areas where it would be used,” reported CEI.


The GND bill was introduced in February 7, 2019 by Rep. Ocasio-Cortez (D-N.Y.), and Sen. Edward Markey (D-Mass.). The bill includes seven goals, which are,

  1. Shift 100% of national power generation to renewable sources.
  2. Build a national energy-efficient "smart" grid.
  3. Upgrade all buildings to become energy efficient.
  4. Decarbonize manufacturing and agricultural industries.
  5. Decarbonize, repair, and upgrade the nation's infrastructure, especially transportation.
  6. Fund massive investment in the drawdown and capture of greenhouse gases.
  7. Adopting these goals would make "green" technology, industry, expertise, products, and services a major U.S. export. As a result, America could become an international leader in helping other countries transition to completely carbon-neutral economies.

CEI concluded, “the Green New Deal is a plan to radically reshape the American economy and the landscape of a household economy. Every aspect of how we live and work would be affected by the proposal. The preponderance of goods essential for agriculture, transportation, and construction would be replaced. In short, it is not realistic.”

For individuals interested in pursuing ways that can be helpful to the environment, the group suggests the following:

  1. Reduce emissions by using your car less and using more sustainable forms of transportation instead like bicycling or public transportation.
  2. Reuse and recycle: use reusable shopping bags instead of plastic ones, refillable water bottles and take advantage of second-hand markets and recycle your waste.
  3. Change your diet by eating less meat and by buying organic food.
  4. Save energy by being careful how you use home appliances.
  5. Plant a tree, which can absorb a ton of CO2 throughout its life.


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