A study unveiled this week by the EPA analyzing the pending climate change bill authored by Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) revealed that the legislation will cost households $80 to $150 a year. The increased costs are associated with the effects of higher energy prices, price changes for other goods and services, impacts on wages and returns to capital.
The EPA modeling analyzed the legislation’s cap-and-trade provisions, which seek to reduce greenhouse gas emissions 17 percent below 2005 levels by 2020. Proponents of the legislation touted the EPA’s findings as – what they consider – a small price to pay to address climate change. Critics argue that the EPA underestimated the costs, and regardless of the actual numbers in the report, it confirms that the legislation will increase energy costs.