U.S. CAP Economic Modeling

December 2009

Following the release of its Blueprint for Legislative Action, the U.S. Climate Action Parntership (USCAP) conducted extensive analysis of the economic impacts of climate legislation. The USCAP analysis was conducted using two economic models similar to those employed by the Environmental Protection Agency and the Energy Information Agency in their review of climate legislation. The analysis is primarily based on provisions of the Blueprint but includes H.R. 2454 provisions where the Blueprint does not provide sufficient detail (use of H.R. 2454 provisions in the analysis should not convey official USCAP endorsement of these provisions) .

Key findings include:

• A well designed climate policy is compatible with robust economic growth of about 2.7 percent per year. GDP is projected to increase approximately 70-71 percent between 2010 and 2030, as compared to approximately 71-72 percent in the no-policy case.
• The average annual household cost of implementing the Blueprint, defined as a reduction in real consumption from the no-policy case, is projected to be $57, $89, and $269 in 2015, 2020, and 2030, respectively. All figures are in undiscounted 2005$.

Click here for more findings and detailed analysis from the study.

Click here for a PowerPoint summary of the study and findings.