Besides its study of the effects of a North Carolina income tax increase, this week the Beacon Hill Institute also has produced its economic analysis of the Waxman-Markey cap-and-tax global warming bill, which the U.S. House will vote on sometime today (have they done it yet?). Not surprisingly, BHI found that W-M will sock it to the economy; but the economics experts also drilled down to some state level analysis, including North Carolina (PDF). The results:
We find that the cap‐and‐trade system would impose a tax of $92.66 per metric ton of carbon in 2020 in order to reach the 20% emissions reduction goal. The cost of carbon would rise to $714 in 2050 to reduce emissions by 83% below 2005 levels. These carbon taxes would cost the residents of North Carolina $4.43 billion dollars in 2020 and $37.34 billion by 2050 through increased energy prices. These increased energy prices would inflict significant harm on the North Carolina economy. The state economy would shed 43,550 jobs by 2020 and 534,070 by 2050. The decrease in labor demand, as seen in the job losses would cause gross wages per person to fall by $446.60 per capita annually by 2020 and $3,766.32 by 2050.
BHI is so good at debunking the fantasies of environmental extremists, much as they did with North Carolina’s Climate Action Plan Advisory Group.
