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The study found that states have the tools to cut emissions and increase the economy as well as protect consumers financially and environmentally.

The EPA’s Clean Power Plan may regulate carbon emissions from existing fossil-fueled power plants that are utilizing the agency’s authority under the Clean Air Act.

Due to be finalized in 2015, the draft rules allow states to select several market-based and other approaches to cut the greenhouse gas emissions from power plants.

The Analysis Group team analyzed the carbon-control rules already in place in various states to identify what insights they might hold for the success of the national rule.

Analysis Group vice president Paul Hibbard said the study found that well-designed programs implementing the Clean Power Plan will not lead to major price impacts or economic disruption.

"Costs from well-designed CO2-pollution-control programs will be modest in the near term and likely offset by longer-term benefits for all and common protections for low-income customers," Hibbard added.

The report said net economic effects on states that already regulate carbon pollution have so far been positive with respect to both economic output and jobs, and the similar situation can be anticipated if they comply thoughtfully with the Clean Power Plan.

According to the report, states that work together to form carbon markets or other collaborative initiatives have the potential to experience better benefits than trying to meet the new standards by themselves.

Analysis Group senior advisor Susan Tierney various states have already put a price on carbon dioxide pollution, and their economies are doing fine.

"The bottom line: the economy can handle – and actually benefit from – these rules," Tierney added.

"Those states have shown they already have the tools available to cut CO2 emissions while generating macroeconomic benefits and protecting consumers from dramatic hikes in their energy bills."

Image: The EPA’s Clean Power Plan may regulate carbon emissions from existing fossil-fueled power plants that are utilizing the agency’s authority under the Clean Air Act. Photo: Courtesy of Arvind Balaraman/FreeDigitalPhotos.net.