Report estimates household cost of climate litigation

Cost estimate

The Heritage Foundation and Power The Future estimate that climate lawsuits and related government measures could add an average of about to a household’s annual expenses. Their analysis, reported by Fox News, assumes every legal action and policy examined succeeds.

The authors calculated that energy companies could face an additional billion in annual costs. They argue those expenses would be passed to consumers through higher prices rather than absorbed entirely by companies or their shareholders.

Under that scenario, gasoline could cost about 41 cents more per gallon and residential electricity rates could rise about 8.6%. The estimate also covers possible increases in other everyday costs tied to energy prices.

What the analysis includes

The analysis examined more than 300 pending lawsuits, three state climate “superfund” laws, 12 state legislative proposals and one federal bill. It counted each lawsuit once and excluded duplicate filings.

The figure is not a forecast of what households will pay. It represents the authors’ estimate if all the lawsuits, laws and proposals prevail. Some lawsuits do not state the damages being sought, leaving the size of any potential award unresolved.

Legal cases in focus

One proceeding is Suncor Energy v. County Commissioners of Boulder County, pending before the Supreme Court. The case could address whether state and local governments may pursue climate claims against fossil fuel companies in state courts.

The analysis also includes New York’s Climate Change Superfund Act, which a federal judge blocked in August. Further court proceedings and legislative action will determine which measures take effect and what costs, if any, companies ultimately face.