TCPR warns against cap and trade’s impact on TN
October 4, 2010 NASHVILLE – The Tennessee Center for Policy Research, the state’s premier free market think tank, released a policy report today demonstrating the impact that cap and trade legislation could have on Tennessee’s economy. It is widely expected that Congress will attempt to pass some form of cap and trade in its lame-duck session after the November elections. The House of Representatives already passed one version of cap and trade in June 2009, and the Senate could pass the same legislation or take up a similar proposal when it reconvenes. Using estimates released by the American Council for Capital Formation and the National Association of Manufacturers, the policy report, titled Cap & Trade: A Lame (Duck) Proposal, details how the proposed legislation would impact Tennessee. Among the additional costs Tennesseans could face include:
- By 2030, gas prices could rise as much as 27 percent, electricity as much as 64 percent, and natural gas as much as 73 percent;
- The average Tennessee household’s disposable income could decline by more than $1,100 per year;
- The legislation could cause Tennessee to lose as many as 52,000 jobs and lose $9.8 billion annually;
- Schools, universities and hospitals could face a 20 to 30 percent increase in energy costs, causing tuition and healthcare costs to skyrocket.
“Not only would cap and trade fail to fix those environmental problems that actually do exist, it would wreak havoc on the Tennessee economy,” said TCPR president Justin Owen. The policy report offers a more effective and efficient approach to address environmental concerns without devastating the national and state economies. “The real solution is free market environmentalism,” said Allyn Milojevich, TCPR research fellow and author of the report. “A system of well-defined property rights and tort law can correct our environmental woes and actually improve, not hamper, the economy.” The report can be downloaded in PDF format at: http://www.tennesseepolicy.org/wp-content/uploads/Cap-Trade-A-Lame-Duck-Proposal.pdf The Tennessee Center for Policy Research is an independent, nonprofit, and nonpartisan research organization committed to achieving a freer, more prosperous Tennessee by advancing free markets, individual liberty, and limited government.