Aggie Hoopsfan
09-22-2009, 08:29 PM
http://www.instituteforenergyresearch.org/2009/09/22/cbo-ko-waxman-markey-hurts-the-economy-more-than-doing-nothing/
When we combine the above paragraph with the CBO’s projections of allowance prices under Waxman-Markey, we reach some startling conclusions. First, if we use the two low-end estimates of the global SCC (namely $5 and $10 per ton), then from the year 2012 onward, the price of allowances under Waxman-Markey is inefficiently high. In other words, American businesses would, from day one, be paying more for a permit to emit carbon, than the global damage resulting from an additional ton of emissions.
Second, if we use the mid-range estimate of the SCC, namely $19 per ton in 2007, then by the year 2028, and continuing from that point onward, the cost of an allowance under Waxman-Markey will be too high. (The reason is that the price of allowances grows at 5.6 percent, while the SCC grows at only 3 percent.) The inefficiency gets worse and worse over time, so that by the year 2050, the CBO projects a price of a carbon allowance of $119 (with rounding), whereas the mid-range estimate has the social cost of carbon in the year 2050 at only $68 per ton. That is an enormous discrepancy.
Pretty incredible reading at the link. F the Dems.
When we combine the above paragraph with the CBO’s projections of allowance prices under Waxman-Markey, we reach some startling conclusions. First, if we use the two low-end estimates of the global SCC (namely $5 and $10 per ton), then from the year 2012 onward, the price of allowances under Waxman-Markey is inefficiently high. In other words, American businesses would, from day one, be paying more for a permit to emit carbon, than the global damage resulting from an additional ton of emissions.
Second, if we use the mid-range estimate of the SCC, namely $19 per ton in 2007, then by the year 2028, and continuing from that point onward, the cost of an allowance under Waxman-Markey will be too high. (The reason is that the price of allowances grows at 5.6 percent, while the SCC grows at only 3 percent.) The inefficiency gets worse and worse over time, so that by the year 2050, the CBO projects a price of a carbon allowance of $119 (with rounding), whereas the mid-range estimate has the social cost of carbon in the year 2050 at only $68 per ton. That is an enormous discrepancy.
Pretty incredible reading at the link. F the Dems.