Contact: Matt Dempsey Matt_Dempsey@epw.senate.gov (202)224-9797
New Analysis Shows President Obama’s Cap and Trade Proposal Will Destroy Jobs, Harm Consumers
WASHINGTON, DC - Senator James Inhofe (R-Okla.), Ranking Member on the Senate Environment and Public Works Committee, today welcomed new economic analysis by the Coalition for Affordable American Energy (CAAE), a coalition of more than 180 trade associations and the U.S. Chamber of Commerce. The report analyzes the projected costs of the climate provision recently proposed in the Obama Administration’s 2010 budget. The study, conducted by Charles River Associates, predicts job losses and increased energy costs, as well as disparate regional impacts.
“The CAAE and Chamber analysis shows clearly that President Obama’s cap and trade proposal will destroy jobs, raise energy prices, and harm consumers,” Senator Inhofe said. “The American people are suffering enough without an additional national energy tax. Congress instead should focus on passing an energy policy that encourages innovation, new technologies, and all forms of domestic energy production.”
Key Numbers from the CRA Report:
Electricity costs are estimated to increase by 27% relative to baseline levels in 2020, rising by 44% in 2025.
After an initial net job loss of 800,000 in 2015, net job losses are projected to more than double by 2020 to 1.9 million and continue to mount to a net loss of approximately 3.2 million jobs by 2025 from baseline levels. While all regions of the country would be adversely impacted, the Southeast, Oklahoma, Texas, and California would be disproportionately affected.
The policy would force a shift towards the use of natural gas for electricity generation and thus demand increase would result in an estimated cost increase of natural gas to consumers of 56%.