at the Citizen Power Alliance 2010 Wind Conference
Carbon Cap and Trade, and the Costs of Trading Hot Air
|What, then, might the true cost of an effective cap-and-trade system be?|
This question was recently examined in a detailed analysis of the Lieberman-Warner “Climate Security Act” by the American Council for Capital Formation and the National Association of Manufacturers, which concluded as follows –
The CO2 emissions allowance price needed to reduce energy use to meet the Bill’s targets is estimated at $55 to $64 per metric ton of CO2 in 2020, rising to between $227 to $271 per ton in 2030.
The cost of the allowances raises energy prices for residential consumers by 26% to 36% in 2020, and 108% to 146% in 2030 for natural gas, and 28% to 33% in 2020, and 101% to 129% in 2030 for electricity. In short, a workable carbon trading scheme, even if it were necessary, could be expected to double the price of basic household energy.
These and other increased energy costs will slow the US economy (at today’s prices) by $151 billion to $210 billion in 2020 and $631 billion to $669 billion in 2030, causing job losses of between 1.2 million to 1.8 million in 2020 and 3 million to 4 million by 2030. If anything, these figures for job losses are conservative, since the calculation ignores any second-order or “knock-on” effects caused by the rapid and worldwide economic dislocation that “cap-and-trade” would cause.
(Click to read entire article)
posted by CITIZEN POWER ALLIANCE at 7:40 AM - permanent link
Citizen Speak campaign mailing to your own contact list