Cap And Trade Essay

2628 WordsMay 11, 201111 Pages
Collin County Community College Costs and benefits of cap and trade 6/30/10 CONTENTS INTRODUCTION 4 Costs of Cap and Trade 5 Benefits of Cap and Trade 9 Conclusion………………………………................... 12 SELECTED BIBLIOGRAPHY ……………………………… 13 Cap and trade is an environmental policy tool that may deliver results with a mandatory cap on emissions while providing sources flexibility in how they comply. Around the world, they have tried carbon taxes and set up protocols. Successful cap and trade programs reward innovation, efficiency, and early action and provide strict environmental accountability without inhibiting economic growth. Non-successful cap and trade programs will cost taxpayers, consumers, and specific firms a varying high amount of money. Today, this is quite a heated topic because there is trillions of dollars riding on the decisions that will be made on the cap and trade bill. In my paper, I will go through the costs and benefits of the cap and trade legislation that passed the House last June, and try not to lean on either the cost or benefits. Costs of cap and trade A. higher costs for energy and energy-intensive goods for households: The hit to GDP is the real threat in this bill. A point to make on cap and trade is it hikes the price of electricity and gas so that Americans will use less. These raised prices will come across not just in electricity bills or at the gas station but in every manufactured good, from food to cars. Consumers will cut back on spending, which in turn will cut back on production, which results in fewer jobs created or higher unemployment. We also estimate over a million lost jobs. Frustrated U.S. consumers will find no satisfaction from artificially boasted prices by purchasing lower-cost imports, as environmental zealots already protest to construct trade barriers to up the costs of

More about Cap And Trade Essay

Open Document