The EPA released its analysis of the Kerry-Lieberman bill – aka the American Power Act – earlier this week and the results are in: this bill, much like the ACES legislation already passed by the House, will have a nonexistent to negligible effect on the longterm prosperity of the USA.
The take away message is that putting a price on carbon and driving our greenhouse gas emissions down to 83% below 2005 levels by 2050 will have practically no effect on the economy. Households (entire households, not each person in them) will have between $79 and $146 less dollars to spend each year because of the costs of implementing climate change protections.
Oddly enough, this analysis doesn’t even include the savings associated with combating climate change. To put that another way: the benefits of avoiding potentially catastrophic alterations to our climate are not considered in this analysis. It’s comforting to hear that combating climate change won’t cost anything significant if we just count the minus side. Let’s all remember, though, that we’re trying to combat climate change because the costs of inaction are incredibly high.