Home
Cap and Trade Rules
 
Back
 
The Tremendous Economic Impact of Cap and Trade Legislation


May 27, 2008
Right Side News
March 13, 2008


NAM and ACCF unveiled a new study highlighting the
National and 50-State Economic Impacts of the Lieberman-Warner Climate
Change Bill. The SAIC Study assesses economic implications on future
energy costs, economic growth, employment, production, household income
and low income earners. These costs are detailed in their report, and
need to be examined in the public arena along with the scientific proofs
on climate change, and how climate change is effected by natural solar and
ocean cycles and man. This bill is coming up for debate in Congress in
June, and it is critical for the American Citizen to be made aware of the
huge costs this legislation would have on EVERYDAY life of not only you
and I, but our children, and their children.

The National Association of
Manufacturers (NAM) and the American Council for Capital Formation (ACCF)
today unveiled a jointly commissioned study
assessing the potential national and state economic impacts resulting from
proposed climate change legislation, America’s Climate Security Act of
2007 (S. 2191), authored by U.S. Senators Joseph Lieberman and John Warner.

The U.S. Senate is expected to debate the legislation in June 2008. S.
2191 aims to reduce total U. S. greenhouse gas emissions with the goal of
lowering emissions 63 percent below their 2005 levels by the year 2050.
These reductions would be achieved through a system that would call for
companies to cap their emissions, and then to have them trade emissions
rights with each other. Conducted by Science Applications International
Corporation (SAIC) using assumptions provided by ACCF and NAM, the study
unveiled today examines the implications of the legislation with respect
to Gross Domestic Product and Gross State Product, future energy costs,
economic growth, employment, production, household income, the impact on
low income earners and other measurements. The study includes a
comprehensive national economic assessment, as well as separate and
specific overviews of the impacts the legislation could have on all 50
U.S. states. The conclusions of the reports indicate that the legislation,
if passed into law, would have a profound economic impact on U.S.
businesses, consumers and governments nationally and in all 50 states. A
sampling of the national findings includes:

Gross Domestic Product (GDP) losses of $151 billion to $210 billion in
2020 and $631 billion to $669 billion per year in 2030

Employment losses of 1.2 million to 1.8 million jobs in 2020 and 3
million to 4 million jobs in 2030
Household income losses of $739 to $2,927 per year in 2020 and $4,022 to
$6,752 per year in 2030
Electricity price increases of 28% to 33% by 2020 and 101% to 129% by
2030
Gasoline price increases (per gallon) of 20% to 69% by 2020 and 77% to
145% by 2030

This is a sobering report in view of the economic and social costs of
action with respect to this legislation,” said John Engler, president and
CEO of the National Association of Manufacturers. “The goal of this study
was to provide policymakers and the public a better understanding of the
costs such public policies would impose on our national and state
economies, as well as the direct implications for U.S. businesses and
households.”

“While the environmental impact of climate change is still under
scientific analysis, the economic implications of the proposed legislation
are quite evident in view of this report,” said Dr. Margo Thorning, senior
vice president and chief economist of the American Council on Capital
Formation.

“Policymakers would be wise to weigh the enormous costs of the proposed
measures in view of any expected environmental benefits.”

"The SAIC analysis was undertaken with the National Energy Modeling System
model, the model used by the Department of Energy’s Energy Information
Administration. The ACCF and NAM provided assumptions about the cost and
availability of new energy technologies, oil prices, and other key
factors. The study’s findings indicate substantial and growing impacts to
consumers and the economy of meeting the increasingly stringent emission
targets through 2030 established by the Lieberman-
Warner Climate Security Act.

“Add to these findings that rapidly developing nations such as China and
India have signaled that they have no indication to adopt similar climate
change policies to reduce their emissions and the economic implications
are even more alarming. Providing greater environmental stewardship is a
shared commitment we must all embrace. At a time when the nation is in the
midst of an economic slowdown and teetering on the brink of a recession,
debating passage of a measure that would further slow the U.S. economy in
return for indeterminate global benefits must be carefully evaluated,”
continued Engler.

--------------------
For a copy of the comprehensive national and 50-state reports, please
visit http://www.accf.org/ or www.nam.org/climatechangereport.

 

Promoting Green Building Design, Construction and Operation, Sustainable Living,
Clean Technology, Renewable Energy Resources and Energy Independence