The National Association of Manufacturers (NAM), in cooperation with the American Council for Capital Formation (ACCF), just released the results of a study assessing the potential economic impacts of climate change legislation proposed by Senators Joseph Lieberman (I-CT) and John Warner (R-VA) on both the federal and state levels. This eye-opening report concludes that if their legislation is passed into law, by 2030, it could lead to employment losses nationally of up to 4 million jobs, electricity price increases of up to 129 percent, gasoline price increases of up to 145 percent and a loss of household income of up to $6,752 per year. S. 2191, American’s Climate Security Act of 2007 would set a limit (cap) on carbon dioxide emissions from fossil fuel use. Each covered facility would be given allowances based on past emissions. Companies that emit less carbon dioxide than permitted by their allowances could sell (trade) the excess to those that do not. S. 2191 sets an aggressive target requiring that emissions decline to 15 percent below 2005 levels by 2020. A sampling of the report's findings would blow your socks off:
- Gross Domestic Product (GDP) losses of between $150 and $210 billion by 2020 and $663 to $669 billion by 2030;
- Employment losses of 1.2 to 1.8 million in 2020 and 3 to 4 million in 2030;
- Household income losses of $739 to $2,927 per year by 2020 and $4,022 to $6,752 a year by 2030;
- Electricity rate increases of 28% to 33% by 2020 and 101% to 129% by 2020; and,
- Gasoline price increases (per gallon) of 20% to 69% by 2020 and 77% to 145% by 2030.
Remember these changes only apply to the United States and our competitors in India and China have shown little interest in addressing climate change.
The report breaks out the impact on individual states as well. (See State of Washington) The U.S. Senate will begin considering the bill in June.
Don C.Brunell, AWB President
