1 November 2016

Bloomberg: America’s Energy Revolution Hits a Historic Milepost

The U.S. passed another historic marker in its energy revolution this year. In February, U.S. transportation emitted more carbon dioxide than the fossil-fuel-heavy power sector for the first time since 1978. Overall, the U.S. has seen a 25 percent drop in carbon-dioxide emissions since 2008, the Department of Energy said, a function of the rise of natural gas and smarter energy use.

Why this should happen now is a function of several different market forces. First, low gasoline prices have encouraged Americans to drive more, increasing CO2 pollution from tailpipes. Second, natural gas has eclipsed coal as the leading fuel for electricity producers. That development, reinforced by Environmental Protection Agency regulation, has led to a historic bust for U.S. coal, which is a much more carbon-intensive fuel than natural gas. [...]

With the global Paris Agreement on climate change set to take effect, and leading businesses increasingly taking energy-and-climate matters into their own hands, the shifting U.S. energy mix isn't just interesting trivia—it's a report card the rest of the world is scrutinizing to see if the globe's economic leader is setting an example to follow. 

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