The Myth, of course, is that any serious effort to control emissions is bound to bankrupt us. The reality, as shown, once again, by two authoritative studies of the McCain Lieberman proposal, is far different.
The better known of the two is the Emissions Trading to Reduce Greenhouse Gas Emissions in the United States: The McCain-Lieberman Proposal, better known as “The MIT study, which showed that the per-household “welfare loss” would typically be a mere $50 to $175 in 2010, rising to about $100 to $350 per household in 2020. And this, please note, was the original McCain Lieberman proposal, before it was watered down to win more vote.
Still, that would be enough to hurt the poor, so we felt better when the Tellus Institute released its Analysis of the Climate Stewardship Act. Tellus’ analysis, while entirely consistent with the MIT study, also assumed targeted policies designed to promote efficiency and renewables, and concluded that, in fact, net savings to consumers accrue from 2013, and would reach $48 billion annually in 2020.
Keep these studies in mind the next time you hear some blowhard from the Competitive Enterprise Institute sound off about the so-called economic realities.