Beware of Cap and Trade Climate Bills
by Ben Lieberman
WebMemo #1723

-----------------Learn more about global warming proposal by Reps. Henry Waxman (D-CA) and Ed Markey (D-MA) that sets caps on energy use and harms U.S. economy. Visit our Cap and Trade Global Warming Bill Rapid Response page-----------------
America's Climate Security Act of 2007 (S. 2191), sponsored by Senators Joseph Lieberman (I-CT) and John Warner (R-VA), is the latest and fastest-moving "cap and trade" bill introduced in Congress this year. All such climate change measures warrant careful scrutiny, as they would likely increase energy costs and do considerably more economic harm than environmental good.
A Costly Proposition
These measures would set a limit, or cap, on carbon dioxide emissions from fossil fuel use. The effect of such a cap would be to impose rationing of coal, oil, and natural gas on the American economy. Each covered utility, oil company, and manufacturing facility would be given allowances based on past emissions or some other formula. Those companies that emit less carbon dioxide than permitted by their allowances could sell the excess to those that do not; this is the trade part of cap and trade. Over time, the cap would be ratcheted down, requiring greater cuts in emissions.
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