Wednesday, May 12, 2010
Potential cost of Kerry-Lieberman Cap & Tax: $69 - $145 Billion per Year
The Kerry-Lieberman Cap & Tax bill establishes a price collar for CO2 emissions with a floor of $12 per metric ton (increasing annually by 3% + inflation) and ceiling of $25 (increasing annually by 5% + inflation). According to the EPA, US emissions of CO2 in 2009 were 5787 million metric tons. Thus, if the legislation is applied to all US emissions, the cost would be $69 Billion (floor) to $145 Billion (ceiling) annually, increasing ~6 to 8+% each year forever.
Posted by MS at 9:53 AM