Energy policies and electricity prices cautionary tales from the E.U.

The United States increasingly looks toward greener energy and some policymakers are beginning to emulate Europe’s renewable energy strategies, a new report says this may not be the best idea. A report, by the Manhattan Institute warns that implementing such policies, which Europe has already begun to turn away from, would be a costly mistake for America.

The report shows that between 2005, when the EU adopted its Emissions Trading Scheme, and 2014, residential electricity rates in the EU increased by 63%, on average. Over the same period, residential rates in the U.S. rose by 32%. Further, the EU countries that have intervened the most in their energy markets — Germany, Spain, and the UK — have seen their electricity costs increase the fastest. Between 2005 and 2014, residential electricity rates in Germany increased by 78%, in Spain 111%, and in the UK 133%.

While the EU’s energy policies did reduce carbon-dioxide emissions, Bryce argues that the reduction must be put into context: between 2005 and 2014, the EU cut its annual per-capita emissions by 1.2 tons, while the U.S. cut its annual per-capita emissions by 1.6 tons.