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May 28, 2008

'Looming Disaster': The Lieberman-Warner Cap-and-Trade Climate Control Bill.

Next week, the Senate will vote on the Lieberman-Warner cap-and-trade climate control bill. The proposed statute is a nightmare that would devastate our economy. The Wall Street Journal calls it "the most extensive government reorganization of the American economy since the 1930s." - Powerline

As pointed out at Powerline, "The idea that American voters can change the Earth's climate is folly. The danger that voters could choose to cripple our economy is, however, very real."

"Very real," indeed. The National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF) have 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. What is "unveiled" is an upcoming economic disaster for America, should the legislation pass. 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.

Related reading: The High Cost of Green Utopian Dreams

Posted by Richard at May 28, 2008 11:00 PM