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Junk in EPA's trunk: Faux analysis

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Monday, June 20, 2011

The U.S. Environmental Protection Agency soft-pedals rigorous analysis showing its policies kill growth and jobs while trumpeting as truth junk analysis portraying burdensome regulations as economically beneficial.

A new National Taxpayers Union ( ) study makes the mendacity clear: The EPA publicly proclaims bogus findings from its second report on the Clean Air Act's costs and benefits that fit its anti-growth agenda -- but is mum about that report's contradictory findings of economic harm.

The EPA loves to talk about that report's cost-benefit analysis projecting up to $2 trillion in annual economic benefits by 2020 from air quality regulations. But that's based on surveys of people's "willingness to pay" to avoid slightly greater health risks -- not on anything that actually adds to economic output or employment.

The agency would rather not talk about the report's macroeconomic analysis. It says such regulations cut Gross Domestic Product in 2010 by $32 billion to $79 billion and could result by 2020 in anything from a $110 billion loss to a $5 billion gain -- far smaller than that highly suspect $2 trillion in "benefits."

No agency should base public policy on junk analysis serving anti-growth ideology -- but the out-of-control EPA does.

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