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The Inconvenient Truth About Pennsylvania Natural Gas

When it comes to reducing carbon emissions, Pennsylvania natural gas doesn’t get the credit it deserves.

To some, natural gas is just another “evil” cog of the fossil fuel industry. John Quigley of the Kleinman Center for Energy Policy called the increased use of natural gas “a setback for climate goals.”

However, climate alarmists cannot ignore one inconvenient truth: Natural gas cuts carbon emissions. And nowhere is this truth more painfully evident than in Pennsylvania.

Pennsylvania’s Success Story

Natural gas is a core component of Pennsylvania energy. The Marcellus Shale boom propelled the Keystone State into the second-largest producer of natural gas nationally. In turn, this boom also transformed the U.S. from an importer to the world’s largest exporter of natural gas. Now, natural gas comprises nearly two-thirds of Pennsylvania’s electricity portfolio.

Since natural gas burns cleaner than other hydrocarbon sources, carbon emissions dropped precipitously in Pennsylvania. In 2023, the Independent Fiscal Office (IFO) found that carbon emissions in Pennsylvania dropped nearly 11 percent—the most significant year-over-year drop in decades.

Interestingly, Pennsylvania didn’t sacrifice productivity to reduce its carbon footprint. While its emissions have steadily declined, Pennsylvania’s energy production also increased, according to the IFO. In fact, of the 13 states that comprise the PJM grid, Pennsylvania is one of only a few that reduced emissions and increased power generation.

Natural gas is also responsible for leading the nation in emissions reductions. Between 2005 and 2019, the United States removed about 819 million metric tons of carbon dioxide. Of that total, the U.S. Energy Information Administration attributes nearly two-thirds of the reduction to natural gas.  

Unfortunately, many pundits and politicians ignore the benefits of Pennsylvania natural gas.

Shapiro’s Solutions Searching for a Problem

Ignoring the benefits of natural gas, lawmakers and climate alarmists prefer to enact questionable policies and programs that threaten the progress of states like Pennsylvania.

One such program is the Regional Greenhouse Gas Initiative (RGGI). RGGI is a multistate cap-and-trade scheme that levies a carbon tax on energy producers, such as natural gas plants. The proceeds from the tax finance other green-energy initiatives.

As an alternative to RGGI, Gov. Josh Shapiro proposed the Pennsylvania Climate Emissions Reduction Act (PACER). PACER is almost a carbon copy of RGGI. But rather than giving the knife to a regional conglomerate, PACER stabs self-inflicted wounds on Pennsylvania’s energy economy.

But RGGI and PACER are, at best, unnecessary and, at worst, detrimental. These policies punish the very industry delivering on emissions reductions. Their perverse incentive structures lavish unreliable, costly energy sources at the expense of reliable ones like natural gas, adding unnecessary costs and diminishing grid reliability. If enacted, RGGI and PACER will impose an added energy tax that forces ratepayers to shell out an extra 30 percent on their energy bills.

The Best of Both Worlds

Policymaking is often a matter of tradeoffs. While devising energy policy, lawmakers must balance economic prosperity, grid reliability, and environmental impact. Energy policy debates usually pit reliability against environmental responsibility—but Pennsylvania’s data tells a different story.

As the nation’s top exporter of electricity, Pennsylvania—and its success with natural gas—offers a model for policies at the state and federal levels. Pennsylvania demonstrates that market-driven energy shifts can reduce emissions while growing the energy sector—all without costly cap-and-trade programs like RGGI or PACER.

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