CO2 Reduction will Harm the Economy

Regulations that limit carbon dioxide emissions will lead to higher energy prices which will harm the economy

Since CO2 emissions are a natural by-product of using coal, oil and natural gas, raising the cost of these energy sources may reduce demand and lower CO2 emissions. High energy prices, however, will have a significant and negative impact on economic growth.

The following are various estimates of the economic cost of CO2 emission limits resulting from the Kyoto Protocol—the global treaty on climate change.

o Global warming regulations currently required by the Kyoto Protocol are estimated to reduce gross domestic product (GDP) among treaty signatories (mostly EU nations) by up to 2%
 
o Post-Kyoto regulations now being negotiated may reduce GDP up to 4.5%

o The Kyoto Protocol raised business energy costs 10%-20% in the United Kingdom.

o Wholesale electricity prices in the EU are up sharply, partly as a result of the added cost of CO2 emissions credits.

o The economic consulting firm Lombard Street Research (UK) released a report suggesting that limiting carbon dioxide emissions would cost $18 trillion.
o Avoiding one degree of potential warming could cost as much as $100 trillion.

o Worldwide power consumption is now about 12 trillion watts, 85 percent of which is provided by carbon dioxide-producing coal, oil and gas. By 2050, our power need will be 30 trillion watts. Researchers reported in Science magazine that no regulation can possibly reduce carbon dioxide emissions and triple energy output.

o Researchers reported in Science that current U.S. energy consumption might require an array of photovoltaic cells covering 26,000 square kilometers (km2); worldwide energy consumption might require about 220,000 km2 of photovoltaic cells. These requirements would triple by 2050. However, all the photovoltaic cells shipped from 1982 to 1998...