The CBO on cap and trade
Farm and Ranch October 19, 2009 The non-partisan Congressional Budget Office says in a new report that a cap and trade system of pollution credits would slow the nation’s economy and cause significant job losses in energy intensive industries. CBO Chief Douglas Elmendorf testified before the Senate Energy Committee last week. Elmendorf: “The CBO concludes that the cap and trade provisions of H R. 2454, the American Clean Energy and Security Act of 2009, would reduce GDP below what it would otherwise have been by roughly ¼ to ¾ percent in 2020 and by between one and 3 ½ % in 2050.” The CBO says however that would be modest given the overall growth that would occur in GDP. But there would be shifts in the economy. Elmendorf: “Climate legislation would cause permanent shifts in production and employment away from industries that produce carbon based energy and energy intensive goods and services and towards industries that produce alternative energy sources and less energy intensive business services.” The American Farm Bureau’s Rick Krause says the CBO study points to higher input costs for farmers and ranchers, but perhaps more significant are the political implications of the non-partisan study. Krause: “Costing additional jobs will not endear voters to Senators. So they will have to listen to their constituents on this issue and at this point in time if it is going to cost jobs, they will think twice about supporting any kind of legislation.” Senate Environment Chair Barbara Boxer has announced a week of intensive hearings on her climate change bill beginning next week. I’m Bob Hoff on the Northwest Ag Information Network.
