WASHINGTON, April 10 /PRNewswire-USNewswire/ -- Global warming
regulations backed by the General Electric Company, DuPont, Caterpillar and
Lehman Brothers will cause higher energy prices and slower economic growth
concludes a report by the Free Enterprise Education Institute.
The report reviews a study by the Federal Energy Information Agency
(EIA) of the Clinton-Gore Administration on the cost of implementing a cap
and trade system in the U. S.
Under the best scenario, the EIA concluded that a cap-and-trade
regulatory scheme to reduce carbon dioxide emissions will:
-- Raise gasoline prices by nearly 53 percent and raise energy prices by
more than 86 percent;
-- Reduce economic growth by 1.9 percent (about $256 billion of 2006 QIV
-- Reduce economic activity across most industries including the
construction, manufacturing, transportation and finance industries; and
-- Exert upward pressure on overall prices and interest rates.
"Lost in all the hype on global warming is the negative impact a
cap-and- trade emissions scheme will have on the economy," said Wayne
Winegarden Ph.D., author of the report. "Higher energy costs will ripple
throughout the economy causing a cascade of harmful affects for consumers
and industry," added Winegarden.
The EIA report estimated the economic impact if the U.S. reduced carbon
dioxide 7 percent below 1990 levels as prescribed by the Kyoto protocol.
The report used a cap-and-trade system as the regulatory mechanism to
reduce carbon dioxide emissions. Under cap-and-trade, industries are
allowed a limited amount of carbon dioxide emissions and if they exceed
that quantity, they must buy emission "credits" from other companies.
United States Climate Action Partnership (USCAP) -- a coalition of
special interest environmental groups and corporations including GE,
DuPont, Caterpillar and Lehman Brothers -- are lobbying Congress for a
cap-and-trade as the preferred regulatory scheme to address global warming.
"It's shocking to see companies pursuing regulations that will harm
economic growth and jeopardize future earnings. Higher gasoline and energy
prices will wreak havoc on consumers' budgets already squeezed by higher
interest rates and utility prices," said Steve Milloy, executive director
of the Free Enterprise Education Institute.
The report is available at http://www.FreeEnterpriser.com.
SOURCE Free Enterprise Education Institute