Study details economic impacts on ND and MN from federal climate change legislation

(4/29/08)

The National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF) commissioned a study to assess the potential national and state economic impacts resulting from proposed cap and trade climate change legislation (S. 2191) authored by U.S. Senators Joe Lieberman (ID-Connecticut) and John Warner (R-Virginia). The U.S. Senate is expected to debate the legislation in June 2008.

S. 2191 aims to reduce total U.S. greenhouse gas emissions with the goal of lowering emissions 63 percent below their 2005 levels by 2050. These reductions would be achieved through a system that would call for companies to cap their emissions, and then to have them trade emissions rights with each other.

Conducted by Science Applications International Corporation (SAIC) using assumptions provided by ACCF and NAM, the study examines the implications of the legislation with respect to employment, household income losses and energy price increases.

This study corroborates similar national studies including one completed by the U.S. Environmental Protection Agency that S. 2191 will reduce the gross domestic product by as much as $983 billion in 2030. Consumers may see their electricity rates increase by 44 percent by 2030 with gasoline prices increasing by $0.53 per gallon.

For North Dakota, the ACCF/NAM study shows the state would lose 2,732 to 4,110 jobs by 2020 and 6,825 to 9,085 jobs by 2030. In addition, higher energy prices would reduce North Dakota’s household income $840 to $2,722 per year by 2020 and $3,542 to $6,459 by 2030.

For Minnesota, the ACCF/NAM study shows the state would lose 22,426 to 33,735 jobs by 2020 and 56,018 to 74,568 jobs by 2030. In addition, higher energy prices would reduce Minnesota’s household income $1,066 to $3,455 per year by 2020 and $4,497 to $8,201 by 2030.