ZCEQI COOLER HEADS ?v'ol- ?v'llI. Ho. [2 ?May Cooler Hoods Prev-oil June 9. 2004 {i report on tire noti?es. science. and economics worming By the Competitive Enterprise Institute Politics Cost Estimates Heep Rising on Lieberman-McCain Climate Bill t't new study by Charles River Associates provides a fuller picture of the costs of the weaker version of 5. 13-9. the lil'lilttate Stewardship Act. that was do rested on the Senate ?oor last year. by incorporating adjustments to investment decisions and consumption choices made as a result of the effects of the bill. The study ?nds that residential electricity prices couid rise by up to 43 percent by 2020. the average household would lose up to 32.255. and GNP would [all by aimost 2 percent. As a result. the notion would lose 600.000jobo. The detailed rloults for the United States are as follows. Residential electricity prices would rise II-Jl'i-i: by and by by 2020. Retail gas prices would rise by 20 ID. and Id-Jb'it'e by 2020. The average household. with an income of 300.000. would lose $025-$340 each year by 20I0. rising to a loss of SIEME- 52255 by 20 ID {representing a maximum loss oi? almost 5- peroent of household income}. The cost burden falls most heavily on the peer. despite the bill's setting up of a. new welfare bureaucrecy to mitigate its effects. The poorest 20 percent of households with on income of 511.000 or less will hear an energy cost increase burden 04 percent larger than the highest income households. The elderly Will similarly be faced with a burden 15- percent larger then that for the under-libs. The study estimates on annual loss to gross domestic product From Sled billion to $525 billion by 2025. The expectation of ?trthet? tightening cops in 20m- and later [as is implicit in the bill]: produces job losses of 250,000 and 010,000 in 20l0 and 2020 respectively. The reduction in economic activity would have a further effect on government revenue. reducing test incomes from motor fuels test and income test by a total of $2.5 billion to El? billion in The bill would seriously affect industries outside the energy sector. reducing motor vehicle production by up to $24 billion and agriCultut?o by up to $29 billion. Released by United for Jobs 2004 {swimmers} and the American Council for Capital Fort-nation on tune it. the study also examines the effects on individual States. Illinois consumers. for instance. vtill sec lower increases in prices but larger reductions in household incomes. and the loss ot? up to 25.000 Jobs in the State. residents will see electricity prices rise up to 540?- the loss of up to 23.000 Jobs. The electricity and oil rel'lt'ilt't?: Industries there will be particularly badly hil. Louisiana. whore Senator Mary landricu has hinted she might vote in favor of the bill. would be much worse hit than the national average. Electricity prices could rise up Io 52 percent. gas prices by up to #2 percent. Household income could drop by end up to 20.000 jobs could be lost. liiross state product would drop by up to 511.5- billion in 2025. with state revenues felling by $211 million. Editor: seem Eitet?t Editor-f intn Hurray footer Heads ts pub-fished by the Carlee-?irts: Enterprise Institute for tire Cooi'er Herr-tie Common. a subgroup nfthe 4 mittion member Nortonoi Consumer Coalition. founded by Comoros alien. Contact or :00! Connecticut Ave? Nit? Suite i250. Washington. DC 2003i Tet: {202) e-nrttii': web site: