Capital Spending, GDP, and Employment Impacts of GHG Regulations under CAA

Capital Spending, GDP, and Employment Impacts of GHG Regulations under CAA

The American Council for Capital Formation (ACCF) has investigated the likely impact of EPA’s new GHG regulations on the cost of capital and U.S. investment.2 ACCF estimated that the pending GHG regulations would “increase the risk premium added to the firm’s cost of capital by 30% to 40%.”