NCPA - National Center for Policy Analysis

Small Businesses Hindered by Greenhouse Gas Regulation

October 9, 2013

Regulation, especially the control of greenhouse gases, has profound implications for small businesses.  Many of the establishments don't have shareholders or massive capital reserves to spend millions of dollars under a new regulatory regime. More than 50 small businesses and 9,000 employees directly affected are hoping that the Environmental Protection Agency understands their economic reality, says Sam Batkins, director of regulatory policy at the American Action Forum.

  • Combined, these small businesses employ more than 9,100 workers, produce 71.7 million megawatts hours of power, and provide electricity for 3.3 million American customers and households.
  • The utilities produce about 50 million tons of carbon dioxide equivalent (CO2e), orsix-tenths of 1 percentof total U.S. emissions.
  • The average facility emits approximately 330,000 tons of CO2e per year; this compares to the largest emitter in the United States, which produces22 milliontons annually.

It is clear that small facilities with sparse capital reserves will be the most impacted by stringent GHG standards.  Even though they contribute less than 1 percent of U.S. emissions, small entities will face the same regulatory hurdles that large utilities encounter.

Source: Sam Batkins, "Small Business Implications of Greenhouse Gas Regulation," American Action Forum, September 19, 2013.


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