Wednesday, April 21, 2010

The Cost of Cap & Trade

The Congressional Budget Office recently updated it's cost estimates for households due to the Cap and Trade legislation that passed the House:
Measured in terms of 2010 income, the average loss per household would be $90 in 2012, $550 in 2030, and $930 in 2050; it would average about $460 per year over the 2012–2050 period.
So we have an idea of what the costs are. I suspect that to some this amount sounds like a lot of money while to others I'm sure this sounds trifling. Regardless, I think that if we are going to have a discussion about whether or not pursuing cap and trade is "worth it" we ought to know what the costs are.

It's also important to keep in mind that the $460 figure is an average. In some states, like those with cold climates and energy infrastructure that relies on fossil fuels (yes, we're looking at you Wisconsin) the cost per household could be substantially higher.

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