NERA/NAM study shows heavy economic impacts of carbon tax

The National Association of Manufacturers have published a new study with NERA Economic Consulting that predicts heavy impacts on an already ailing economy should a federal carbon tax be passed.

Today, the National Association of Manufacturers (NAM) released a study conducted by NERA Economic Consulting that shows a carbon tax would have a devastating impact on manufacturing and jobs. The report, titled Economic Outcomes of a U.S. Carbon Tax, found that levying such a tax would impact millions of jobs and result in higher prices for natural gas, electricity, gasoline and other energy commodities. Manufacturing output in energy-intensive sectors could drop by as much as 15.0 percent and in non-energy-intensive sectors by as much as 7.7 percent.

It’s truly difficult to imagine people seriously considering a policy that would so seriously damage our economy. It’s even more difficult to imagine elected officials considering a carbon tax when we haven’t even fully recovered from the last economic downturn brought on (largely) by other government policies.

26. February 2013 by Jason Hayes
Categories: carbon, Energy, Jobs, Marketplace Information, Policy | Tags: , , , , | 4 comments

Comments (4)

  1. The study is seriously flawed. It’s a product of vested interest. A carbon tax would cause some shifting of our economy to use less fossil energy and to do more conservation and renewable energy harvesting. It’s not the end of the world, and it could create more jobs that it causes to end. And they would be better jobs.

  2. The likes of Greg Mankiw like the idea of a carbon tax, by the way, as does Grover Norquist when his hands are not twisted by the Koch brothers. Mankiw was chief economic advisor to GW Bush. Check it out. Why does he support it? Because it makes sense, unless you’re a puppet of the fossil energy industry.

  3. And you better post my comments on this moderated blog.

  4. Not a strong start to your commenting. The first two comments engage in guilt by association and ad hominem fallacies and the third comment is a threat.

    If you’d like to have a discussion about the relative merits of a carbon tax, we can do that, but the “this study is a product of a vested interest,” “evil Koch brothers,” and “puppet of the fossil energy industry” arguments won’t work here.

    Please continue.