posted April 1, 2013 by David Tuerck, Ryan Murphy, & Paul Bachman
A recent report from RTI International and La Capra Associates claims to find net economic benefits for North Carolina's renewable energy policies, but these benefits are mismeasured and spurious. Orthodox cost-benefit analysis will not find anything like what the report's authors estimate. Many claims are difficult to directly evaluate given the opacity of the report, despite the report's length. Elsewhere, confusing terminology conceals the lack of any evidence that subsidizing green energy will reduce the cost of power in North Carolina. The primary benefits the report puts forth are an increase in spending in North Carolina. It implies that a $72 million increase directly led to an increase in total spending in North Carolina by $1.4 billion. This is absurd, even when using a Keynesian model of the economy. Since the report assumes that the programs were paid for by reducing other government spending, the best guess is that they had no impact on spending in North Carolina.