Release Date: Apr 28, 2009Contact: 888-249-NEWS
Coalition of Nearly 200 Associations Releases Study Exposing Economic Consequences of Cap & Trade
Data Highlights Broad Spikes in Energy Costs, Millions of Jobs Lost
WASHINGTON, D.C.—Ahead of Congressional action on proposed cap and trade legislation, Charles River Associates today released a study, commissioned by the Coalition for Affordable American Energy (CAAE), exposing the economic consequences of the bill. The data projects broad increases in energy costs that will result in more than 3 million jobs lost by 2030 and a cost of more than $2,100 per household.
"This study proves that the pending bill will be a massive weight on an economy that is barely treading water," said Bruce Josten, executive vice president of Government Affairs at the U.S. Chamber of Commerce, a key player in the CAAE, during today's press conference to release the study. "All consumers and businesses would face steep increases in energy costs, leading to a spike in the cost of goods and services throughout the U.S. economy."
According to the study, by 2030 natural gas and electricity costs will increase by more than 50% and motor fuels costs by 78 cents a gallon. Taken together, the combined effects of increased energy costs and dollars spent on carbon reductions will force industry to reduce productivity.
"As those fixed costs rise, disposable income will be displaced by higher energy costs, resulting in falling consumption in other areas," said Jade West, senior vice president of Government Relations at the National Association of Wholesaler-Distributors, another key participant in the CAAE. "The end results will ripple across the country, with projected job losses in the millions, higher energy costs, and slower economic growth."
The Coalition backs goals set by the administration and Congress of lowering concentrations of greenhouse gases in the atmosphere, becoming more energy efficient, and incentivizing green energy technologies. Yet its more than 180 members agree that any climate change legislation must preserve American jobs and competitiveness, be international in scope, accelerate the development of green technologies, reduce barriers to climate-friendly energy sources, and promote energy efficiency.
The complete study and list of Coalition members is available at: http://www.uschamber.com/publications/reports/090428_climateprovision.htm
The Coalition for Affordable American Energy (CAAE) is a coalition of more than 180 trade associations representing millions of businesses of all sizes and types that depend on reliably available, stably-priced and affordable energy to operate their businesses.