Policy Reports The Economics of Climate Change Legislation in North Carolina
May 01, 2008
The Beacon Hill Institute at Suffolk University in Boston, Mass., reviews policies under consideration in North Carolina to cut carbon dioxide (CO2) emissions. Supporters contend those policies would help North Carolina respond to climate change. Supporters also contend the policies would produce positive economic benefits.
This report rebuts the advocates’ economic arguments. Beacon Hill Institute researchers find “serious methodological flaws” in the documents used to justify the climate change policies.
“We find that the proposals would exert significant negative effects on the state economy. By 2011, the state would shed more than 33,000 jobs. Annual investment would drop by about $502.4 million, real disposable income by more than $2.2 billion and real state Gross Domestic Product (GDP) by about $4.5 billion. The energy Cap and Trade system causes most of the harm. The negative economic effects would spill over into state and local tax collections. We estimate a loss of $184.6 million in revenues in 2011.
The proposals’ negative economic and fiscal effects stem from the price and tax increases they would impose on the energy and transportation sectors. Our results contrast with the positive results produced by [the Climate Action Plan Advisory Group] and [Appalachian State University], which suffer from the previously-described deficiencies.”
