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Brookings: Cap and Trade Will Cost Jobs and GDP

Posted By Conn Carroll On June 9, 2009 @ 1:27 pm In Energy | Comments Disabled

The Brookings Institution released their own analysis [1] of analysis on the costs of cap and trade yesterday. Unlike Heritage’s recent Center for Data Analysis study [2], the Brookings effort does not analyze any particular bill, but does look at the economic costs of four policy scenarios. Their conclusions:

Welfare effects

  • Loss in Personal Consumption of $1 to $2 trillion present value
  • Incremental stringency produces high incremental cost, e.g. extra 8 % reduction increases costs 45%
  • US GDP in 2050 lower by 2.5%

Employment effect

  • -0.5% at peak in first decade

This Brookings study confirms what the EPA [3], IPCC [4], RFF [5], MIT [6], and The Heritage Foundation [2] have all already reported: carbon cap and trade is a jobs and GDP killer.

Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2009/06/09/brookings-cap-and-trade-will-cost-jobs-and-gdp/

URLs in this post:

[1] analysis: http://www.brookings.edu/~/media/Files/events/2009/0608_climate_change_economy/20090608_climate_change_economy.pdf

[2] study: http://www.heritage.org/Research/EnergyandEnvironment/wm2450.cfm

[3] EPA: http://www.epa.gov/climatechange/economics/pdfs/WM-Analysis.pdf

[4] IPCC: http://www.ipcc.ch/pdf/assessment-report/ar4/syr/ar4_syr_spm.pdf

[5] RFF: http://www.rff.org/RFF/Documents/RFF-DP-08-16.pdf

[6] MIT: http://web.mit.edu/globalchange/www/MITJPSPGC_Rpt146.pdf

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