| June 23, 2009 |  |
CBO Analysis Finds Waxman-Markey Energy and Climate Bill Costs Would be Negligible
Statement by Claudio Martinez, Union of Concerned Scientists
WASHINGTON (June 23, 2009) – The Congressional Budget Office (CBO) released the results of a analysis late last Friday showing that the Waxman-Markey energy and climate bill, if enacted, would cost each U.S. household $175 in 2020. Experts at the Union of Concerned Scientists (UCS) said the report should finally put to rest hyperventilated claims by bill opponents that the legislation would be prohibitively expensive.
Below is a statement by Claudio Martinez, risk analyst for UCS's Clean Energy Program:
"The CBO analysis shows that the costs of the Waxman-Markey energy and climate bill would be negligible—for the average household, less than a half a percent of their income.
"The poorest Americans would feel the effects of the bill the least. Households in the lowest income bracket would actually save $40 in 2020, or a dime a day. The second lowest income households would pay only $40 in 2020, which also equates to a dime a day. The rest of the population would pay only 60 to 90 cents a day.
"The CBO's analysis is a snapshot of how a cap-and-trade program would affect various households in 2020. It doesn't look at other aspects of the bill, such as federal efforts to speed development of new technologies and increase energy efficiencies, which could reduce costs, and potentially yield more savings to consumers.
"We should not underestimate the effects of policies that reduce our energy usage. The Union of Concerned Scientists did an analysis that looked combining a carbon cap with a suite of energy and transportation policies that go even further than those included in the Waxman-Markey bill and found it would save the average household $300 in 2020 and $900 in 2030 in energy costs.
"CBO's cost estimate is trivial when you consider what would happen if we don't address global warming. Doing nothing would cause far more financial damage from rising sea levels, more intense storms and other environmental threats. If current trends continue, the total cost of global warming in the United States could be as high as 3.6 percent of gross domestic product by 2100."
The Union of Concerned Scientists puts rigorous, independent science to work to solve our planet's most pressing problems. Joining with citizens across the country, we combine technical analysis and effective advocacy to create innovative, practical solutions for a healthy, safe, and sustainable future.
