Costs of carbon dioxide cap-and-trade program detailed
The National Association of Manufacturers (NAM) and the American Council for
Capital Formation (ACCF) recently hired the Science Applications International Corporation (SAIC) to investigate the expected economic impacts of enacting and implementing the Lieberman-Warner climate change (America’s Climate Security Act of 2007 (S. 2191))
Their results were a sobering look at how restricting energy use will heavily impact our social and economic well being.
The study, which is available on the ACCF website, predicts,
- 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
“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.”