What if Wisconsinites were told they couldn’t heat their houses by burning fossil fuels in a furnace, the way about 4 out of 5 Wisconsin homes do now? What would that cost us?

Quite a bit, it turns out.

While there’s been some research nationally about the potential costs of disconnecting homeowners from fossil fuels in favor of the likeliest all-electric alternative, the air source heat pump, we wanted to know the hard numbers for the harsh winters of Wisconsin.

When our economists quantified the cost of a natural gas ban and, in effect, a heat-pump mandate, we discovered that not only does it add $19,900 in heating costs (net present value over the life of the unit) in Wisconsin’s cold climate, it also likely leads to a 5% cut in the number of homes built.

Labor force participation

Wisconsin’s labor force participation rate (the percentage of adults who are working or looking for work) has been higher than that of the country overall in every year since 2000. Due to an aging population and retirements of the “baby boomer” generation, these numbers have declined both in Wisconsin and the U.S. Still, 65.8% of Wisconsin adults were in the labor force in 2023, while the overall national percentage was 62.6%.

Entrepreneurship and business formation

In the area of business formation, Wisconsin is now well above the U.S. median. Forbes Advisor ranked Wisconsin the 14th best state to start a business in 2024. In this ranking, Wisconsin outpaced Illinois (ranked 28), Iowa (31), Michigan (40), and Minnesota (43).

Data from the Bureau of Labor Statistics confirms that the Wisconsin economy has excelled in business creation, especially in comparison to Illinois.

Data excerpted from a larger report on economic indicators, Five surprising facts about the Wisconsin economy: Experiencing the benefits of free market reforms.

For residential customers in Wisconsin, the average monthly electric bill has more than doubled over the past two decades.

The following comments were submitted in response to Pat McIlheran’s Viewpoint:

“The bureaucrats are trying to dismantle our tried and true organizations because they teach values to our kids. They want the kids to know what to think, not how to think.”

— Al J., Amherst

“It’s a shame it has come to this for Scouts. As an Eagle Scout I learned so many valuable life lessons and how to be a good human and be successful at life. We have lost our way as society and it’s sad to watch.”

— Chris Roche

The Badger Institute, formerly known as the Wisconsin Policy Research Institute (WPRI), has long been at the forefront of the fight for school choice, right to work, welfare reform, tax restructuring, limited government, civil society and so much more. If you appreciate the Institute’s legacy and want to support free markets, opportunity and prosperity, please consider donating today. Your support will help the Institute continue to advocate for conservative principles now and in generations to come.

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