California Climate Change Policy: Is AB 32 a Cost-Effective Approach?

American Council for Capital Formation
by Margo Thorning, Ph.D.
June 16, 2006

(Full Report - PDF)

A new ACCF report shows that Californians could expect higher energy costs, millions of dollars in lost gross state product and widespread job loss under California's Assembly Bill 32. The report provides a wide body of economic forecasts on the arbitrary, California-only cap proposal currently pending in the California state legislature.

Dr. Margo Thorning, Senior Vice President and Chief Economist for the American Council for Capital Formation and author of the report, said, "AB 32 is likely to cause "leakage" of industry to states and countries with no mandatory emission caps resulting in job losses and no net reduction in GHGs. Given the quality and quantity of empirical research demonstrating that near-term targets and timetables for CO2 emissions reductions will negatively impact California without materially slowing the growth of global emissions, policymakers in California should consider carefully whether they want to proceed down this path alone." The California Chamber of Commerce (See California) released the report in Sacramento on June 15, 2006.

Click her to read the full report.