Carbon Tax Would Kill Major Industries, Hurt U.S. Consumers
October 22, 2012
A carbon tax will hurt the United States' economic recovery and any short-term growth. It will hurt the energy industry the most and energy industry companies will move to other countries, taking their dollars and jobs with them. Most developing nations will not have a carbon tax because they do not want to hurt their living standards. Developing nations are the leading producers of carbon emissions and they will not work on reducing them while their household incomes are relatively much lower than that of developed nations, says Mark J. Perry, a professor of economics at the Flint campus of the University of Michigan and a scholar at the American Enterprise Institute.
There will be less of a need for a carbon emission tax if there are fewer carbon emissions. The abundance of natural gas is providing a much cleaner source of energy than coal. The abundance of natural gas and advanced drilling technologies helps with the production levels in the United States and could be used to help other countries. Use of natural gas is on the rise, while the use of coal is quickly declining. This decreases the amount of carbon emissions in the United States.
The case against a carbon emission tax:
- The amount of electricity from carbon emission rich coal is down 10 percent in four years and expected to fall another 10 percent in eight years.
- Eighty-five percent of the projected increase in global emissions of carbon dioxide will come from developing countries.
- The United States has cut its carbon emissions by 9 percent since 2007.
Source: Mark J. Perry, "Carbon Tax Would Kill Major Industries, Hurt U.S. Consumers," Investor's Business Daily, October 16, 2012.
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