National Black Chamber of Commerce says Waxman-Markey would reduce employment by 2.3 million jobs in 2015

The National Black Chamber of Commerce (NBCC) today released a study by Charles River Associates (CRA) on the economic impacts of H.R. 2454, the American Clean Energy and Security Act of 2009 (ACESA), the regulatory climate bill sponsored by Rep. Henry Waxman (D-CA) and Ed Markey (D-MA). The results aren’t pretty, and they generally get worse over time as the Act’s emission caps tighten. The report specifically debunks two myths propagated by ACESA proponents. One is that there would be virtually no cost to consumers because (a) utilities would receive lots of free emission allowances, avoiding costs they would otherwise pass on to ratepayers, and (b) revenues from auctioned allowances would be returned as dividends to low-income households. What this myth overlooks is that emission caps inescapably–and by design–increase the cost of producing and consuming energy. The “cap” in cap-and-trade “works”–that is, reduces emissions–by creating an artificial scarcity in the right to produce and use fossil (carbon-emitting) energy. This drives up the price of coal, oil, and natural gas. It also increases reliance on higher-cost non-fossil energy. About 85% of our total energy is carbon-emitting, and about 99% of all transport sector energy is carbon-emitting. Since energy is used to produce and move everything from autos to food to houses to bytes of electronic information, ACESA’s impacts would cascade through the economy. In the report’s words: This analysis reveals that businesses and consumers would face higher energy and transportation costs under ACESA, which would lead to increased costs of other goods and services throughout the economy. As the costs of goods and services rise, household disposable income and household consumption would fall. Wages and returns on investment would also fall, resulting in lower productivity growth and reduce employment opportunities....Open Market