CBO Chief: Cap-and-Trade May Slightly Decrease GDP

October 15, 2009

Email this story Print this post Add your comments

Speaking before the Senate energy panel Oct. 14, the head of the Congressional Budget Office said that the cap-and-trade system included in the House bill would slow domestic economic growth slightly over the next few decades.

By 2020, the nation’s gross domestic product may be off 0.25 to 0.75 percent, and by 1-3.5 percent by 2050, said CBO Director Douglas Elmendorf.

Elmendorf noted that his estimates involve uncertainties and “do not include any benefits from averting climate change,” reports the Washington Post.

President Obama and congressional Democratic leaders, by contrast, have said that a cap on carbon emissions would boost the economy by providing new jobs in the cleantech sector, as well as economic growth from related cleantech exports.

Elmendorf said that, while new jobs would be created, there would significant disruption due to people in fossil-fuel based sectors losing their jobs.

Pointing out what would be the matter with Kansas with regard to cap-and-trade, Sen. Sam Brownback (R-Kan.) said his state would likely face higher energy prices under the system.

“While we’re projecting these things, people are having to deal with their basic lives on it, and this is going to be very expensive,” Brownback said.

In response, Elmendorf noted that failure to address climate change could impose other costs on Kansas, such as by harming agriculture output.

In all, Elmendorf called the economic downside to the house bill “comparitively modest.”

The House climate bill calls for 17 percent emissions cuts by 2020.

The Senate version calls for 20 percent cuts by 2020.

Email this story Print this post Add your comments

Advertisers

Enhance Sustainability. Improve Profitability.

Learn how at the SAP Sustainability Resource Center. >>

Unclear about the EPA's new GHG Rule?

Learn how it could affect your business. >>

EPA mandatory emissions reporting starts Jan 1st

CSA Standards can help your organization get ready for compliance. Find out how. >>

Best Practices: Product Environmental Compliance

How to achieve compliance at a significantly lower cost. Download the full report. >>

Join the Discussion

Reader Comments

0.25 – 3.5% is a slight decrease in growth? It is absurd to even suggest those numbers would not have a significant impact on every single American. We can not afford this legislation that will not even be able to reach its goal of making a positive impact on the environment. Visit http://tiny.cc/pxIgi to write your Senators and let them know you oppose cap and trade.

DCTJ | October 16th, 2009

Recent Daily News [ see all ]

11/20/2009
11/19/2009
11/18/2009

Charts [ see all ]

European Paper Industry Cuts CO2 Emissions by 42% since 1990

S. America Takes Most Urgent View of Copenhagen Talks

Nike Tops Annual Climate Action Scores

Oceans May Trap more Carbon than Forests

Jobs

View All Jobs >> Post a Job >>

Comments and Discussions

Trade Association on Trade Group on EPA Chemical Regs: ‘If Everything is a Priority, Then Nothing is a Priority’
"Seriously… that..."

Gary Markowitz on Supermarkets Tackle Emissions Reductions, Fuel Efficiency
"Supermarkets waste over 10 percent of their energy through improper..."

peter in ireland on Ontario May Follow California’s Lead on TV Energy Efficiency
"Governor Schwarzenegger is shooting himself in the foot! 1...."

Environmental Leader on S. America Takes Most Urgent View of Copenhagen Talks
"The survey respondents (the PDF report mentions 4,000 respondents in 38..."

Jake on UPS Trying New Hydraulic Hybrid Trucks
"A point of clarification: the Reuters press release referenced herein reports that 20 UPS will purchase..."

Custom Organic Shirts on S. America Takes Most Urgent View of Copenhagen Talks
"90% of North Americans believe it is urgent to get a global climate..."

peter dublin on California City’s Green Building Ordinance Applies to Commercial Buildings
"Why energy efficiebnt regulation on buildings –..."

Environmental Leader