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States address climate change

States that are moving forward with legislation to address climate change through mandatory carbon emissions reductions and mandatory emission trading regimes will pay a high economic price for their policies, according Dr Margo Thorning, senior vice-president and chief economist with the American Council for Capital Formation (ACCF).
Dec. 16, 2005

States that are moving forward with legislation to address climate change through mandatory carbon emissions reductions and mandatory emission trading regimes will pay a high economic price for their policies, according Dr Margo Thorning, senior vice-president and chief economist with the American Council for Capital Formation (ACCF).

The New England Governor/Eastern Canadian premier's agreement (CCAP), which would cap greenhouse gas emissions at 1990 levels by 2010, reduce the cap to 10 percent below 1990 levels by 2020, and then reduce emissions to between 75 percent to 85 percent below 2000 levels by about 2050 would have negative impacts on households, workers, and state budget receipts, according to the information.

CCAP reports the following predictions for impact on economy:

•Loss of industrial production due to relocating of industries to other states where no emission limits exist.

•Increased energy costs.

•Reduction in overall household buying power.

•Loss of state tax revenues.

•Unfair burden falls to poor and elderly.

The CRA International analysis can be found at the ACCF Web site accf.org.

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