Climate Change, Cap & Trade - Margo Thorning
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WSUU.S. Congress is currently developing major energy legislation aimed a reducing greenhouse gas emissions though a Cap & Trade regime for the first time in history. In the summer of 2009, the House of Representatives passed the American Clean Energy and Security Act of 2009, also known as the Waxman-Markey Bill. Action now has move to the Senate. If enacted, this sweeping energy reform could significantly affect both the cost and sources of energy that fuel the U.S. economy as well as the international competitiveness of U.S. industry. This session will address some of the key issues currently being debated in the Senate concerning the design of a clean energy and climate bill, such as the potential role of low- and no-carbon technologies, the use of domestic and international offsets, and other cost containment measures. The potential economic impacts of climate change policy on the future of the U.S. economy will also be discussed.
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![Economic and Environmental Impact of U.S. Climate Change Policy By: Dr. Margo Thorning, Ph.D. Senior Vice President and Chief Economist American Council for Capital Formation Washington, D.C. www.accf.org Tel: 202-293-5811 [email_address] Prepared for: Wichita State University Center for Economic Development and Business Research Webinar April 27, 2010](https://image.slidesharecdn.com/accfkansasapril272010v4-100430103850-phpapp02/85/Climate-Change-Cap-Trade-Margo-Thorning-1-320.jpg)
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CEI Email 10.15.03
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- 1. Economic and Environmental Impact of U.S. Climate Change Policy By: Dr. Margo Thorning, Ph.D. Senior Vice President and Chief Economist American Council for Capital Formation Washington, D.C. www.accf.org Tel: 202-293-5811 [email_address] Prepared for: Wichita State University Center for Economic Development and Business Research Webinar April 27, 2010
- 2. Contributors to Global Mortality in 2000 Source: John P. Holdren, “Science and Technology for Sustainable Well-Being, “ Science, May 2009.
- 3. Total Energy Sector CO2 Emissions under Baseline forecast and Waxman Markey Bill
- 4. Per Capita Energy Sector CO2 Emissions under the baseline and Waxman Markey bill
- 5. Summary of Key Macroeconomic Modeling Results for the Waxman Markey bill: 2020 -355,210 -0.7% $93 EIA-NEMS Limited -81,480 -0.3% $32 EIA-NEMS Basic -1,800,000 -0.8% $30 CRA/NBCC 10,000 -0.2% $48 ACCF/NAM Low Cost -80,000 -0.4% $61 ACCF/NAM High Cost $23 Allowance Prices (2007$ per metric ton) N/A -0.2 to -0.7% CBO Impact on Jobs (Change from BAU) GDP Impact (% Change from BAU)
- 6. Summary of Key Macroeconomic Modeling Results for the Waxman Markey bill : 2030 -2,317,000 -2.3% $191 EIA-NEMS Limited -597,000 -0.8% $65 EIA-NEMS Basic -2,200,000 -1.0% $49 CRA/NBCC -1,790,000 -1.8% $123 ACCF/NAM Low Cost -2,440,000 -2.4% $159 ACCF/NAM High Cost N/A Allowance Prices (2007$ per metric ton) N/A -0.4 to -1.1% CBO Impact on Jobs (Change from BAU) GDP Impact (% Change from BAU)
- 7. Macroeconomic Impact of Waxman Markey Bill: Changes in Kansas Economy Compared to Baseline Forecast -$4,450 -$532 -$3,262 -$310 Loss in GSP (million 2007$) -29,170 -900 -21,420 130 Loss in Jobs -$261 2020 -$130 2020 -$1,397 -$851 Loss in Household Income (2007$) 2030 2030 High Cost Case Low Cost Case
- 8. Macroeconomic Impact of Waxman Markey Bill: Change in Energy Prices in Kansas Compared to Baseline Forecast 24% 16% 19% 12% Rise in Gasoline Prices 64% 21% 29% 0% Rise in Residential Electricity Prices 77% 11% 59% 5% Rise in Residential Natural Gas Prices 2030 2025 2030 2025 High Cost Case Low Cost Case
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