Emissions Down in 2008: Take Note of Why

The U.S. Energy Information Administration recently reported that CO2 emissions fell in 2008. That, of course, should make all those fretting about so-called manmade global warming quite happy.

However, the causes for this drop off should concern the rest of us.

The EIA reported:

Factors that contributed to the decline include:

• Energy prices

- In 2008, gasoline and diesel prices were at their all-time peak level
- Near the end of the year, despite lower energy prices, gasoline and diesel demand was dampened by a drop in consumer income

• Lower economic growth


- In 2008, GDP growth was a modest 1.1 percent

- In the 4th quarter, GDP fell at an annual rate of 6.3 percent

• Total energy consumption in 2008 fell by 2.2 percent

That provides valuable information about how CO2 emissions reductions sought by Congress and the White House will be achieved, that is, through higher energy costs and a declining economy.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council