Climate Economics Seminar: The Impact of Carbon Price Policies on U.S. Industry Output and Employment
Date(s): July 10, 2008 (10:30 am)
Location: Room 4144, EPA West
Presenter: Mun S. Ho, Richard Morgenstern, Jhih-Shyang Shih (Resources for the Future)
Description: While there are many different proposals to control carbon emissions in the U.S. they all have very different impacts on the various industries. Furthermore, the effect on industry output and employment may change over time as the economy adjusts to the carbon policy. Firms may substitute capital for energy, and consumers may substitute towards less carbon-intensive goods or imports. The length of time for these substitutions to take place vary and the long run impact may well be very different from the short run. This paper aims to inform the Congressional debates about the impact of carbon policies at the detailed industry level. Some policy proposals include an off-setting tax on imports, and we consider its impact. There are also proposals to compensate industries with free allowances under a cap-and-trade system and we estimate the level of such compensation for each industry.
Presentation Slides (PDF) (PDF, 269 kb, About PDF)