NCPA - National Center for Policy Analysis

ARIZONA REJECTS ECONOMY KILLING ENERGY TAXES

March 4, 2010

Utah is not the only Western state that is rejecting the left's global warming regulation policies.  Last month Ariz. Gov. Jan Brewer (R) signed an executive order stating that Arizona will not endorse any emission-control plan that could raise costs for consumers and businesses, says the Heritage Foundation.  

What does it all mean?  According to the Arizona Republic: 

  • The state will no longer participate in a groundbreaking attempt to limit greenhouse gas emissions across the West, a change in policy by Gov. Jan Brewer that will include a review of all the state's efforts to combat climate change.
  • Ariz. officials said the policy shift was rooted in concerns that the controversial emissions plan would slow the state's economic recovery.  

The economic costs of cap-and-trade planned for the nation as a whole are bad enough, says Heritage: 

  • A national cap-and-trade program would make the United States about $9.4 trillion poorer by 2035.
  • Much of this decline would be from reduced economic productivity and job loss.
  • Under the House legislation there would be 1.15 million fewer jobs on average than without a cap-and-trade bill.  

Western states would be particularly hard hit, says Heritage senior fellow Ben Lieberman: 

  • Coal mining will be very hard hit, so Montana and Wyoming and other coal-producing states will see this important sector of their economies shrink significantly.
  • The promise of oil shale in Colorado, Utah and Wyoming will never be realized under the House bill.
  • Agriculture is hard hit, particularly things common in parts of the West that are not well positioned to partially defray their costs by availing themselves of offsets, like ranching on federal lands, fruits and vegetables, and potatoes.
  • Since rural Westerners have to drive long distances during the course of each day, gasoline and diesel price increases hurt them more than other Americans. 

Source: Conn Carroll, "AZ Rejects Economy Killing Energy Taxes," Heritage Foundation, February 12, 2010. 

For text:

http://blog.heritage.org/2010/02/12/outside-the-beltway-az-quits-climate-endeavor/  

For report:

http://www.azcentral.com/12news/news/articles/2010/02/11/20100211climate-brewer0211-CP.html

 

Browse more articles on Economic Issues