CAP&TRADE WON’T SLOW GROWTH

USCAP: Climate change actions won't stunt US economic growth
Nick Snow, December 3, 2009 (Oil & Gas Journal)

"US economic growth would not be significantly reduced through 2030 if the nation took aggressive action to address climate change, the US Climate Action Partnership said…[I]ts economic analysis estimates US gross domestic product would grow 70-71% with the adoption of climate legislation similar to its Blueprint for Legislation during that period, and 71-72% in the absence of climate policy. Royal Dutch/Shell, BP, and ConocoPhillips are members."

The EPA analysis showed little impact on GDP from cap&trade. (click to enlarge)

"USCAP’s analysis used two economic models similar to ones used by the US Environmental Protection Agency and the Energy Information Administration when they reviewed House legislation passed in June…The models showed that enacting climate legislation would cause an almost imperceptible dip in domestic GDP growth through 2030…Under a business-as-usual scenario without climate legislation, total US economic output was projected to reach $22.3 trillion by 2030. With the USCAP’s Blueprint recommendations, the domestic economy would arrive at the same point 2-4 months later…"

[Janet Peace, vice-president of markets and business strategy, Pew Center on Global Climate Change:] “All of the studies, including USCAP’s analysis, show employment growing under all scenarios…The climate policy is absolutely compatible with robust economic growth… Limits or delays in development of either domestic or international efforts will increase the program’s costs… There is no question that we can address the climate challenge in a way that protects consumers while growing our economy…While there are costs involved, they are modest and prudent investments in a cleaner, more effective future.”

A National Association of Manufacturers analysis showed little change in GDP from cap&trade. (click to enlarge)

"The study also found that complementary actions to develop energy efficiency, transportation, and carbon capture and storage programs will be essential in advancing technology and lowering future energy spending."

[Jeff Hopkins, principal advisor on energy and climate strategy, multinational mining company and USCAP member Rio Tinto:] “We’re very comfortable with the idea that markets will deliver the best solution… Only a climate policy such as the one USCAP proposes will encourage the integration of various technologies…”

An analysis by the Brookings Institution showed little GDP impact from cap&trade. (click to enlarge)

[Melissa Lavinson, senior director of federal affairs, USCAP member Pacific Gas & Electric Co.:] “An industry like ours needs to know what policies are going forward because it makes long-term investment decisions. Utilities expect to spend $1.5-2 trillion, and jobs will be associated with those investments. New technologies will require new workers with new training. Understanding what the rules of the road will be [is] especially critical.”