Energy & economic impacts of 25x'25

In August 2007, The Energy Information Administration (EIA) released the report Energy and economic impacts of implementing both a 25-percent renewable portfolio standard and a 25-percent renewable fuel standard. The report had the following results:

• The implementation of the Renewable Portfolio Standard (RPS) and the Renewable Fuels Standard (RFS) cause dramatic decreases in the use of coal, natural gas, and petroleum-based fuels with a shift towards biopower, wind power, and biofuels.
  
• Total U.S. energy-related carbon dioxide emissions are 14% lower than business-as-usual.
  
• Achieving the RPS and RFS leads to higher energy prices, as producers substitute more expensive renewable fuels for less expensive fossil fuels. Higher energy prices reduce economic activity.
  
• Higher prices contribute to a reduction in transportation demand for liquid motor fuels on an energy basis.

In a press release by the national 25x'25 campaign, Ernie Shea, 25x'25 project coordinator, said the report "produced better-than-expected results, including major reductions in U.S. oil dependence and carbon dioxide emissions.” Shea also said the report does not "quantify major economic benefits gained by reductions in dependence on foreign oil, nor does it account for improvements to our national and rural economies and the creation of new jobs that will result from growth in the renewable energy sector."