State-by-State “Electrification” Costs Report
On September 22, 2020, E&E Legal released a state-by-state report on the capital cost associated with “electrification” for states and the nation. The report, and its accompanying data spreadsheet, was authored by Tom Tanton, E&E Legal’s Director of Science and Technology Assessment.
According to the report, electrifying the entire nation, with a goal of eliminating the direct consumption of fuel and reducing climate change emissions, would cost between $18 trillion and $29 trillion in first costs. Going all renewable will force costs to the high end of the range. Also, constructing and implementing an “all-electric” nation will include two other significant costs: stranded assets and deadweight losses. The bottom line is that electrification is not a cost-effective means of reducing carbon emissions from commercial or residential buildings nor the transportation sector.