Economic Effects of the Bush Energy Plan
August 8, 2001
President Bush's National Energy Plan would boost the nation's economy, according to a report prepared by the Heritage Foundation's Center for Data Analysis and the economics consulting firm DRI/WEFA, Inc.
Researchers compared projected conditions under current law and regulations up to 2030 with conditions under the Bush plan. They found that by increasing energy efficiency and supply, the Bush plan, if enacted and implemented in its entirety, would:
- Increase the average annual rate of economic growth by 0.1 percentage point per year -- to 3.2 percent from a projected 3.1 percent -- throughout the period 2005 to 2025.
- Reduce the unemployment rate from 2005 through 2025 to an average of 4.8 percent instead of 5.1 percent.
- Increase investment by an average of $65 billion per year (adjusted for inflation) throughout the period 2005 to 2025.
As a result, after adjusting for inflation:
- Gross Domestic Product would be $540 billion higher in 2025, and 1.5 million more Americans would be employed.
- By the end of 2025, net capital stock would be $1.4 trillion higher.
- And annual disposable personal income for an average family of four would be $1,828 higher by 2030.
Source: William W. Beach et al., "Econometric and Policy Evaluation of the National Energy Plan," CDA Report, August 2001, Center for Data Analysis, Heritage Foundation, 214 Massachusetts Ave., N.E., Washington, D.C. 20002,(202) 546-4400.
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