Blogs » Politcs Plus » Cap-and-Trade Cost myth


Although a carbon tax or a cap -and -trade bill must clear about eight committees before becoming law, the myth that it would cost every household in America $3,100 has been debunked by the Environmental Protection Agency and

The Republican Party based their figures from the Massachusetts Institute of Technology study.-The main author of that study said the RNC misrepresented the figures because they ignored the key provisions designed to cushion the impact the customers. Even the right wing conservative Heritage Foundation figure’s the average families’ would only increase by $1500 a year. The EPA estimates that figure to be about $98-$140 a year.

The Republican National Committee sent out emails titled “President Obama and the Democrats are planning to jack the energy prices and pass them on you and your family.” The e-mail went on to say that the liberal democrats will raise a family energy cost by $260 a month. They quoted a study that estimated that the revenues from captain trade in the year 2015 would be worth $366 billion. They used that $366 billion and divided by 117,000,000 households to arrive at $3100 per household. John Riley, associate director for research at the MIT program that the republicans cited, wrote a letter to House Minority Leader John Boehner telling him that he failed to include that the Obama Administration intends to provide rebates to customers to cushion the effect of increased prices. The initial letter estimated that the annual cost to the customer would be about $340 but Mr. Riley recalculated and said it would be about $800. The key word is “estimated”, so if you are against the cap-and-trade so the higher $3,100 will suit your need and vice versa.

I was pleasantly surprised to read a Sunday’s Houston Chronicle article; that stated that conservative Texas is on the way to passing a second ambitious renewable energy bill to curb greenhouse gases. The second bill just passed the senate and would require Texas power plants to be producing 1500 MW of clean renewable energy by a 2020 and help fund utility- scale solar, biomass and geothermal projects. $600 million is not a lot but it’s a long way from “Forget about it, it’s just an Al Gore hoax.”