The Lieberman-Warner (S.2191 – America’s Climate Security Act) could cost the United States between 1.2 and 1.8 million jobs by 2020, according to a study conducted by Science Applications International Corporation (SAIC). An estimated 3 to 4 million jobs could be lost by 2030.
The goal of Lieberman-Warner is to cap-and-trade man-made greenhouse gas emissions (GHGs) in the United States at the 2005 level of emissions by 2012 and subsequently lowers the cap between 2012 and 2050. Under the bill the EPA would be responsible for allocating emission allowances and distributing auction proceeds. EPA would allocate 9% of the allowances from 2012-2020 to states for: rates reflecting efficiency measures, building efficiency compliance, enacting stringent measures, Low Income House Energy Assistance Plan (LIHEAP), population and based on carbon intensity.
The bill would significantly increase the costs of energy, exacerbating the damage done by the energy bill signed into law by President Bush last December. The Energy Independence and Security Act (EISA) of 2007 has more expensive cars running on more expensive fuels.
The proposed Lieberman-Warner bill would also result in detrimental impacts to the economy. The decreased industrial output as a result of higher energy prices and high costs of compliance would have a damaging effect on the job sector and significantly increase disposable household income spent on energy.
Environment and Public Works Committee Ranking Member Senator James Inhofe (R-Okla.) had this to say:
This should send a chilling message to any Senator who wishes to make any changes to the bill to lessen the economic impact on their constituents.
As The Heritage Foundation’s Ben Lieberman asserts, cap-and-trade legislation is simply an effort for the government to artificially control the market economy. Unfortunately for the consumers, the result would be extremely higher costs in exchange for very little environmental gain.