Tuesday, 25 August 2009

Costs of the ETS

In an Article:

It Wants Your Wallet! Beware the Cap and Trade (Same as our ETS) Monster
Stephen Bloom writes:

Those promoting cap-and-trade use feel-good clichés about environmental sustainability, green jobs and green energy, and a prosperously pristine planet. They try to paint an appealing picture. Even the name of their legislation, The American Clean Energy and Security Act of 2009, sounds noble and patriotic. But behind their persuasive imagery is a destructive economic reality.

In fact, one very prominent cap-and-trade advocate did recently go on record describing the pain his plan would inflict on American consumers. His name? Barack Obama, then a U.S. Senator, in January of last year. Listen to the words of his chilling warning: "Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket. Even regardless of what I say about whether coal is good or bad. Because I'm capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers."

Well, at least back then, Barack honestly disclosed some of the pain. He didn't talk about the flow-on costs of an ETS.

Our Mr Rudd and also Mr Turnbull do not talk about the pain they are going to inflict on Australia.

Back to the article:

Under cap-and-trade, prices of gas and electricity and everything else we make through carbon-emitting industries are pushed up (way up) on purpose, so you will consume less. Under cap-and-trade, you will drive less, use less electricity, and get less of most everything else, all while paying more. In short, you and most other Americans will be poorer.

The impact of cap-and-trade will be devastating for individuals and potentially catastrophic for our nation's already troubled economy. Leading economic number-cruncher William W. Beach, Director of the Heritage Foundation's Center for Data Analysis, foresees grim results. "Inflicting a strong cap-and-trade law on our sickly economy would be like throwing an anemic flu patient into a pool of blood-sucking leeches," warns Beach, "The prognosis for recovery would be dim."

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