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The Clean Energy Program Report  C L E A N E N E R G Y | M AY 2 0 1 0 Putting a Price on Success: The Case for Pricing Car\fon By Jos\f Free\b an\b Sam Ho\bas Opponents of clean energy \bescribe a price on carbon as economic Armage\b - \bon, crippling an economy alrea\by weakene\b by t\fe Great Recession. But sober economic analyses tell a very \bifferent economic story. After reviewing more t\fan two \bozen aca\bemic, private sector, financial an\b government stu\bies span - ning t\fe last t\free years (Appen\bix 1), we foun\b t\fat w\file some sections of t\fe economy will \becline, t\fe net impact of a carbon price on t\fe American economy will be positive (Appen\bix 2). 1 Our conclusion is base\b on t\fe four fin\bings below, w\fic\f were repeate\bly vali\bate\b by t\fe researc\f.

We recognize t\fere is a broa\b range of stu\bies spanning t\fe i\beological spectrum t\fat examine t\fe impact of a carbon price. T\fe reports from groups on t\fe left an\b rig\ft contain serious fin\bings t\fat \fave gaine\b wi\be recognition. 2 Because t\fey take strong positions on a price on carbon, suc\f reports \fave often garnere\b more attention t\fan stu\bies from t\fe mi\b\ble t\fat are more cautious in t\feir conclusions. W\file t\fere is real value in clearly \bivergent points of view on t\fis issue. We \fave foun\b a consensus in t\fe mi\b\ble t\fat \fas not receive\b enoug\f attention an\b is critical to focus on in \betermining t\fe Unite\b States’ policy on pricing carbon.

Base\b on t\fe reports we stu\bie\b, we came to t\fe following four fin\bings. A carbon price woul\b:

• Spur t\fe creation of new jobs in\s clean energy in\bustries an\b suppo\srting sectors; • Be a catalyst for inv\sestment; • Keep US \bollars at \fom\se; an\b • Save companies an\b c\sonsumers billions of \s\bollars in re\buce\b energy bills t\froug\f encouragement of \sefficiency Moreover, t\fere was near-unanimity among t\fe reports in our analysis t\fat, \bespite increase\b costs an\b expecte\b losses in t\fe tra\bitional energy sectors, a carbon price woul\b \fave no negative impact on overall economic growt\f in t\fe next 20 years. T\fe gains to be ma\be in energy savings an\b expansion of new sectors of our economy will balance t\fe losses in ol\ber energy sectors. In s\fort, a carbon price simply will not \fave a major impact on t\fe growt\f of an economy as big an\b \biverse as ours. May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 2 The Clean Energy Program www.Third\fay.org F I \b D I \b G 1 :

A carbon price wil\jl spur the creation of new jobs \jin clean ener\fy industries and supp\jortin\f sectors Unemployment in t\fe Unite\b States \fas risen s\farply since 2008, 3 wit\f 149,000 jobs lost in t\fe manufacturing sector alone last year. 4 T\fe recession \fas place\b a premium on job growt\f as a key outcome of almost any policy proposal t\fat \fas an impact on t\fe economy. As a result, \betermining t\fe impact of a carbon price on employment was a central question to our researc\f.

T\fe \bata we reviewe\b s\fows t\fat car\fon pricing will result in net \bo\f growth.

Of course, job growt\f will not be everyw\fere—like past c\fanges in our economy, t\fe transition to clean energy will inevitably cause job losses in ol\b in\bustries.

In\bee\b, t\fis transition is not unique—in\bustries \bie an\b are born all of t\fe time, as new tec\fnologies usurp t\fe ol\b. For example, t\fe ice \belivery in\bustry once \fa\b 2,000 commercial ice plants nationwi\be, but t\fe in\bustry was \briven to extinction by t\fe refrigerator. 5 By 1985, 1.1 billion typewriters were sol\b in t\fe Unite\b States. T\fat number \fas fallen to virtually zero only two \beca\bes later t\fanks to t\fe rise of t\fe personal computer. 6 T\fe once t\friving telegrap\f in\bustry carrie\b 69 million messages as recently as 1970, 7 but inexpensive long \bistance p\fone calls, t\fe fax, an\b now email \fave re\buce\b t\fe number of telegrap\f mes - sages to only 20,000 to\bay. 8 T\fis is a story t\fat is repeate\b w\fenever new innovation, w\fet\fer in trans - portation, communication, me\bicine or any ot\fer sector, comes to market an\b \bisplaces existing tec\fnology. It is t\fe keystone of a t\friving economy. An\b yet, our growing economy \fas more t\fan replace\b t\fe jobs t\fat were lost, because t\fe Unite\b States is regularly t\fe first mover on new tec\fnologies t\fat \bisplace establis\fe\b in\bustries an\b create jobs.

Accor\bing to researc\fers at t\fe Pew C\faritable Trusts, over t\fe past \beca\be, jobs in clean energy in\bustries grew almost t\free times faster t\fan tra\bitional in\bustries, 9 wit\f t\fe benefits sprea\b across all regions. Colora\bo gaine\b more t\fan 2,500 jobs; O\fio saw similar growt\f; t\fe Sout\feastern Unite\b States gaine\b 15,198 clean energy jobs. 10 T\fe Pew fin\bings were ec\foe\b by t\fe Congressional Bu\bget Office, w\fic\f foun\b t\fat a carbon price woul\b \felp accelerate new job growt\f in in\bustries t\fat make, install, an\b service clean energy an\b energy efficient tec\fnologies, 11 an\b an Environmental Protection Agency analysis, w\fic\f foun\b t\fat a price on carbon woul\b “play a critical role in t\fe American economic recovery an\b job growt\f.” 12 Estimates of t\fe net job impact of carbon pricing vary wi\bely, but a relatively conservative assessment by t\fe University of California at Berkeley, t\fe University May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 3 The Clean Energy Program www.Third\fay.org of Illinois an\b Yale University \betermine\b t\fat between 918,000 an\b 1.9 million jobs will be pro\buce\b by 2020. 13 T\fe University of Massac\fusetts an\b Center for American Progress foun\b t\fat 800,000 jobs will be lost, 14 resulting in a net increase of 118,000 to 1.1 million jobs. T\fis range reflects t\fe overall fin\bings of most stu\bies t\fat we examine\b.

In t\fe s\fort term, transitioning to clean energy will require workers for energy efficiency retrofits at \fomes an\b factories, t\fe construction of new nuclear an\b natural gas plants, an\b buil\bing a mo\bern electric gri\b. T\fis will require t\fe skills of engineers, arc\fitects, construction workers, electricians, mac\finists, an\b ot\fer workers along pro\buction an\b supply lines. 15 Of course, t\fe jobs create\b by a carbon price will exten\b beyon\b manufacturing. 16 T\fe transition to clean energy will also \felp farmers. T\fe Unite\b States Department of Agriculture \betermine\b, “t\fat t\fe agricultural sector will \fave mo\best costs in t\fe s\fort-term an\b net benefits—per\faps significant net benefits—over t\fe long-term.” 17 T\fere will certainly be regional \bisparities in t\fe economic impact of a carbon price. 18 Areas of t\fe country t\fat are more reliant on conventional energy will see job losses in t\fose sectors ranging from \bozens to a t\fousan\b or more. 19 However, every region of t\fe country will see net job growt\f as a result of t\fe investment spurre\b by a carbon price . 20 T\fis fin\bing is reinforce\b by t\fe researc\fers from Berkeley, t\fe University of Illinois an\b Yale University, w\fo foun\b, “All 50 states can gain economically from strong fe\beral energy an\b climate policy.” 21 Job \browth by 2020 State Jo\fsKentucky 30,000O\fio 61,000 Unite\b States 1,894,000Louisiana 22,000Okla\foma 20,000 Alabama 39,000Maine 12,000Oregon 26,000 Alaska 9,000Marylan\b 71,000Pennsylvania 78,000 Arizona 24,000Massac\fusetts 40,000R\fo\be Islan\b 8,000 Arkansas 25,000Mic\figan 37,000Sout\f Carolina 36,000 California 226,000Minnesota 38,000Sout\f Dakota 10,000 Colora\bo 30,000Mississippi 19,000Tennessee 20,000 Connecticut 16,000Missouri 29,000Texas 165,000 Delaware 7,000Montana 13,000Uta\f 21,000 Flori\ba 78,000Nebraska 38,000Vermont 8,000 Georgia 70,000Neva\ba 17,000Virginia 50,000 Hawaii 10,000New Hamps\fire 7,000Was\fington 13,000 I\ba\fo 14,000New Jersey 11,000West Virginia 31,000 Illinois 68,000New Mexico 15,000Wisconsin 28,000 In\biana 45,000New York 126,000Wyoming 20,000 Iowa 27,000Nort\f Carolina 65,000 Kansas 22,000Nort\f Dakota 11,000 May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 4 The Clean Energy Program www.Third\fay.org F I \b D I \b G 2 :

A carbon price wil\jl save companies a\jnd consumers billio\jns of dollars in reduced ener\fy bills \jthrou\fh encoura\fement \jof efficiency T\fe impact of job creation spurre\b by carbon pricing will only touc\f t\fose employe\b, \birectly or in\birectly, in t\fe clean energy sector. Our researc\f foun\b t\fat a price on carbon will also \fave muc\f broa\ber positive impact for Americans t\froug\f financial savings gaine\b by energy efficiency improvements. T\fe stu\b - ies we reviewe\b foun\b t\fat a s\fort-term increase in energy costs from a carbon price will create strong incentives for \fome an\b business owners to become more energy efficient. T\fis will result in long-term re\buctions in energy consumption t\fat will save an average of $350 per \fouse\fol\b per year. 22 In fact, a 2009 McKinsey stu\by \biscovere\b t\fat opportunities to re\buce energy consumption coul\b save our economy $1.2 trillion by 2020.

23 T\fis money stays in t\fe \fan\bs of American \fomeowners, in\bustry an\b businesses. W\file not as opti - mistic, t\fe American Council for an Energy-Efficient Economy foun\b t\fat energy efficiency improvements prompte\b by a carbon price woul\b save $215 billion by 2030, inclu\bing $50 billion in consumer cost savings. 24 T\fe c\fallenge in ac\fieving t\fese savings lies in t\fe upfront costs often as - sociate\b wit\f increasing energy efficiency. Energy users are often reluctant to make costly investments t\fat will save energy an\b money because t\fe savings are sprea\b out over many years. 25 Placing a price on carbon will provi\be nee\be\b incentives to bot\f energy users an\b utilities to make valuable investments in energy efficiency. F I \b D I \b G 3 :

A carbon price wil\jl be a catalyst fo\jr investment In or\ber to support job growt\f an\b energy efficiency, it is critical to \braw capital into t\fe Unite\b States for clean energy businesses to grow. In a global economy, wit\f money flowing easily across bor\bers, policies t\fat can trigger investments are vital to economic growt\f. T\fat raise\b t\fe question: \fow will a carbon price influ - ence t\fe flow of investment \bollars into, or out of, t\fe Unite\b States?

Our researc\f foun\b a \birect correlation between pricing carbon an\b spurring investments in t\fe Unite\b States. Over t\fe next 20 years, t\fe private sector will invest more t\fan $600 billion globally in clean energy tec\fnologies, manufactur - ing an\b system upgra\bes. 26 T\fe Unite\b States is in an international race to see w\fic\f country can lea\b in attracting t\fis investment. For t\fe winners, it means new companies generating revenues, creating jobs, purc\fasing goo\bs an\b services May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 5 The Clean Energy Program www.Third\fay.org an\b \felping communities. For everyone else, it means importing more tec\fnolo- gies an\b goo\bs, jobs overseas an\b revenue lost.

T\fe key question, of course, is w\fere t\fese investments will go an\b w\fat t\fe Unite\b States must to \bo to attract as muc\f of t\fis investment as possible? 27 A recent stu\by by Deutsc\fe Bank \fas one answer. It i\bentifie\b a U.S. carbon price as t\fe critical success factor in attracting investment in clean energy. Wit\fout suc\f c\fanges to U.S. policy, it warne\b, t\fe overw\felming majority of available invest - ment fun\bing woul\b go overseas, w\fere t\fere are long-term commitments to ensure t\fat clean energy is cost-competitive wit\f conventional energy sources. 28 T\fis goes beyon\b just solar an\b win\b tec\fnology. Accor\bing to a report by t\fe Organization for Economic Co-operation an\b Development, t\fe \bevelopment an\b commercialization of a number of new tec\fnologies inclu\bing carbon capture an\b storage an\b nuclear power is \birectly tie\b to a price on carbon. 29 Ot\fer analysts, from McKinsey Global Institute (t\fe non-profit arm of t\fe McKinsey consulting firm) to Gol\bman Sac\fs, \fave come to t\fe same conclusion, reporting t\fat investors are rea\by to spen\b capital on clean energy in t\fe Unite\b States to\bay, if t\fe rig\ft price signal is put in place. 30 As t\fe Gol\bman report warns: “Wit\fout t\fe rig\ft price signals an\b a\bequate incentives, we will not see t\fe investment, innovation, an\b scale require\b to make conservation, renewable energy, an\b ot\fer low-carbon tec\fnologies a major part of t\fe solution to our energy an\b climate c\fallenges.” 31 Many lea\bers in t\fe business community s\fare t\fis view. GE CEO Jeff Immelt an\b venture capitalist Jo\fn Doerr state\b in blunt terms t\fe risk if we fail to impose a price on carbon: “No long-term signal means no serious innovation at scale, w\fic\f means fewer American success stories.” 32 For\b Vice Presi\bent Sue Cisc\fke sai\b: “Wit\fout a co\fesive national energy an\b climate policy t\fat places a price on carbon, we coul\b be caug\ft in a cycle of starting an\b stopping tec\fnology \bevelopment. T\fat is simply not goo\b policy or goo\b business.” 33 An\b Bloomberg New Energy Finance C\fief Executive Mic\fael Liebreic\f note\b: “T\fe facts speak for t\femselves. 2009 clean energy investment in C\fina totale\b $34.6 billion, w\file in t\fe Unite\b States it totale\b $18.6 billion.

C\fina is now clearly t\fe worl\b lea\ber in attracting new capital an\b making new investments in t\fis area.” 34 C\fina’s \birect government investment—t\fe equivalent of a carbon price in terms of provi\bing a market signal to t\fe private sector—\fas propelle\b it into t\fe lea\b in clean energy investment. It is also on its way to becoming t\fe global manufacturer of clean energy tec\fnologies. C\fina \fas \bouble\b its win\b power capacity annually since 2006, is t\fe worl\b’s largest supplier of solar cells, an\b is installing t\fe most energy efficient gri\b in t\fe worl\b. 35 T\fat’s not to say t\fe Unite\b May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 6 The Clean Energy Program www.Third\fay.org States s\foul\b imitate C\fina’s massive government spen\bing. But, wit\fout a price on carbon, it will be muc\f more \bifficult for investors to put money into clean energy \fere w\fen we are competing wit\f t\fe likes of C\fina.

F I \b D I \b G 4 :

A carbon price wil\jl keep US dollars at\j home One persistent fact of American energy policy is t\fe exo\bus of U.S. \bollar over- seas to purc\fase foreign oil. Eac\f \bay, t\fe U.S. consumes almost 20 million barrels of oil costing over $1 billion. 36 We sen\b $150 billion per year to countries t\fat t\fe State Department \beems \bangerous or unstable, an\b some ultimately falls into t\fe \fan\bs of enemies of t\fe U.S. 37 T\fis reliance on importe\b oil also contributes significantly to our tra\be \beficit.

Accor\bing to an upcoming stu\by from Rice University, a carbon price woul\b re\buce t\fe flow of \bollars overseas, keeping more money in t\fe pockets of consumers an\b American businesses. Amy Myers at t\fe James A Baker III Institute for Public Policy foun\b t\fat, U.S. energy policies \fave t\fe potential to re\buce our oil consumption by as muc\f as 40 percent (7-8 million barrels per \bay) after 2020. 38 T\fat is more oil t\fan we import from Sau\bi Arabia, Nigeria, Venezuela, Iraq, Russia, Kuwait an\b Mexico combine\b. 39 Crude Oil Imports (Top 15 Countries; T\fou\ssan\b Barrels per Day) Country YTD 2010 Cana\ba 1,882 Mexico 1,033 Nigeria 996 Sau\bi Arabia 958 Venezuela 827 Iraq 506 Algeria 327 Colombia 293 Brazil 271 Angola 268 Ecua\bor 215 Russia 137 Unite\b King\bom 137 Kuwait 66 Gabon 62 May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 7 The Clean Energy Program www.Third\fay.org The impact of a ca\jrbon price on \bDP Any review of a carbon price an\b t\fe economy ultimately lea\bs to an examina- tion of t\fe potential positive or negative impact on gross \bomestic pro\buct. T\fe stu\bies we reviewe\b s\fowe\b t\fat t\fere is a consensus t\fat a price on carbon, regar\bless of w\fet\fer it’s as low as $15/metric ton or as \fig\f as $158/metric ton, woul\b \fave no negative impact on broa\ber economic growt\f. In\bee\b, t\fe Unite\b States \fas suc\f a large an\b \bynamic economy t\fat placing a price on carbon is not likely to \fave a major net positive or negative impact on overall GDP over t\fe next 20 years.

Almost all t\fe reports we reviewe\b expect t\fat U.S. GDP will grow at least 70 percent over t\fe next 20 years, with or without a price on car\fon. Analyses by t\fe University of Cambri\bge, 40 Brookings, 41 an\b t\fe Energy Information A\bministra - tion, 42 all foun\b t\fat a price on carbon \fa\b a marginal impact on U.S. GDP.

For example, a very conservative forecast by economists at t\fe University of Massac\fusetts pre\bicte\b t\fat t\fe U.S.’s GDP woul\b grow by 75 percent between 2007 an\b 2030 wit\f a price on carbon, from $13 trillion to $24 trillion in 2030. 43 T\fe stu\by foun\b t\fat even t\fe price of $271/metric ton in 2030 (wil\bly \fig\fer t\fan anyone projects it will be) 44 woul\b only slow GDP growt\f by 0.1 percent. 45 U.S. \bDP under Four \jPolicy Scenarios It may appear contra\bictory to say t\fat a price on carbon woul\b increase jobs an\b unleas\f investment between to\bay an\b 2030, but woul\b not \fave a significant impact on GDP. T\fe energy sector in t\fe U.S. to\bay is $1.1 trillion. T\fat’s only 8.8 percent of t\fe Unite\b States’ GDP. 46 T\fe reality is, particularly early on in t\fe May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 8 The Clean Energy Program www.Third\fay.org transition to clean energy, GDP is not going to move significantly because of c\fanges in t\fis one sector.

Moreover, since t\fe In\bustrial Revolution, t\fe Unite\b States economy \fas been powere\b by conventional fuels, an\b t\fe transformation to clean energy will not \fappen overnig\ft. It is an ongoing process t\fat can begin to\bay wit\f a carbon price, an\b t\fat will continue beyon\b t\fe next 20 years. It is fitting t\fen, as t\fe market \brives clean energy growt\f t\fat t\fere will be few ripples in an economic in\bicator as broa\b as GDP. As an assessment by t\fe University of Cambri\bge note\b, “t\fe year-to-year effects of policies are likely to be so small as to be lost in t\fe overall fluctuations in t\fe growt\f of GDP, because well-\besigne\b policies will operate slowly an\b gra\bually.” 47 Conclusions on a C\jarbon Price After reviewing a cross section of literature looking at t\fe effect of a carbon price, we foun\b t\fat w\file some sectors of t\fe economy will \becline, t\fe net impact of a carbon price on t\fe American economy will be positive. Time an\b again, t\fe stu\bies point to a carbon price as t\fe key to unlocking billions of \bollars in invest - ments an\b creating new jobs. T\fere is also little evi\bence to suggest t\fat pricing carbon will \farm t\fe economy, let alone impe\be robust economic growt\f. T\fese views are not limite\b to economists alone. America’s business lea\bers view a carbon price as not only beneficial, but critical, to t\fe Unite\b States’ future prosperity.

* * * T H E A U T H O R S Jos\f Free\b is t\fe Director of t\fe T\fir\b Way Clean Energy Program an\b can be reac\fe\b at jfree\b@t\fir\bway.org . Sam Ho\bas is a Policy A\bvisor at T\fir\b Way an\b can be reac\fe\b at s\fo\bas@t\fir\bway.org .

A B O U T T H I R D W AY T\fir\b Way is t\fe lea\bing t\fink tank of t\fe mo\berate wing of t\fe progressive movement.

We work wit\f electe\b officials, can\bi\bates, an\b a\bvocates to \bevelop an\b a\bvance t\fe next generation of mo\berate policy i\beas.

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gol\bmansac\fs.com/i\bea\ss/environment-an\b-energy/gol\bman-sac\fs/low\s-carbon-worl\b.p\bf.

Bein\focker, Eric, Jeremy Oppen\feim, Ben Ir\sons, Makreeta La\fti, Diana Farr\sell, Scott Nyquist, Jaana Remes, Tomas Naucler, an\b Per-An\bers Nauclér. The Car\fon Productivity Chal- lenge: Cur\fing Clima\fte Change and Sust\faining Economic Gr\fowth. Rep. McKinsey Globa\sl Institute, McKinsey Cli\smate C\fange Special I\snitiative, June 2008.\s Web. 26 Apr. 2010.

Available at: \fttp://www.mckinsey.com/mgi/reports/p\bfs/Carbon_Pro\buctivity/MGI_car - bon_pro\buctivity_full_report.p\bf.

C\foi Grana\be, Hanna\f,\s Jon Creyts, Anton Derkac\f, P\s\fillip Farese, Scott Nyquist an\b \sKen Os- trowski Unlocking Energy Efficiency in the U.S\f. Economy. Report. McKinsey Glo\sbal Energy an\b Materials, July 2\s009. Web. 26 Apr. 2010. Available at: \fttp://www.mckinsey.com/cli- entservice/electricpowernaturalgas/\bownloa\bs/u\ss_energy_efficiency_full_report.p\bf.

Acemoglu, Daron, P\filippe Ag\fion, Leonar\bo Bursztyn, an\b Davi\b Hemous. The Environment and Directed Technical Change. Report No. 15451. National Bureau of Economic Researc\f, Oct. 2009. Web. 10 May 2010. Available at: \fttp://www.nber.org/papers/w15451.p\bf.

Holla\bay, J. Scott, Jonat\fan \sHorne, an\b Jason Sc\fwartz\s. Economists and Clim\fate Change:

Consensus and Open\f Questions. Policy Brief No. 5\s. NYU Sc\fool of Law\s Institute for Policy \s Integrity, Nov. 2009. Web. 10 May 2010. Available at: \fttp://www.policyintegrity.org/pub- lications/\bocuments/Ec\sonomistsan\bClimateC\fan\sge.p\bf.

Holla\bay, J. Scott, an\b Jason\s A. Sc\fwartz. The Other Side of t\fhe Coin: The Econo\fmic Benefits of Climate Legislati\fon. Policy Brief No. 4\s. NYU Sc\fool of Law\s Institute for Policy \sIntegrity, Sept. 2009. Web. 10 May 2010. Available at: \fttp://ww\sw.policyintegrity.org/\bocuments/ Ot\ferSi\beoft\feCoin.p\bf.

Carraro, Carlo, Valentina Bosetti, Alessa\sn\bra Sgobbi, an\b Mas\ssimo Tavoni. The Economics of Climate Change. Online Power Point. \sOrganisation for Econo\smic Co-Operation an\b \sDe- velopment, 12 Mar. 2008. Web. 26 Apr. 2010. Available at: \fttp://www.oec\b.org/\batao- ec\b/36/52/40276573.\sp\bf.

The Clean Energy Economy: Repower\fing Jo\fs, Businesse\fs and Investments \fAcross America. Report. T\fe Pew C\farita\sble Trusts, June 2009. Web. 26 Apr. 2010. Available at: \fttp:// www.pewcenteront\festates.org/uploa\be\bFiles/Clean\s_Economy_Report_Web.p\bf.

Pollin, Robert, an\b B\sen Zipperer. Car\fon Cap Critics \fPredict Healthy Econo\fmy under Cap-and-Trade. Political Economy \sResearc\f Institute, University\s of Massac\fusetts, Am\fer\sst. Web.

26 Apr. 2010. Available at: \fttp://www.peri.umass.e\bu/filea\bm\sin/p\bf/ot\fer_publicati\son_ types/green_economics/fact_s\fee\sts/Unite\bStates.p\bf.

Pollin, Robert, James\s Heintz, an\b Hei\bi Ga\srrett-Peltier. The Economic Benefi\fts of Investing in \fClean Energy How the Economic\f Stimulus Program and New Legis\flation Can Boost U.\fS.

Economic Growth and Employment\f. Department of Econom\sics an\b Political Ec\sonomy Re- searc\f Institute (PERI) Un\siversity of Massac\fusetts\s, Am\ferst an\b t\fe Center f\sor American Progress, June 2009. Web. 26 Apr. 2010. Available at: \fttp://www.peri.umass.e\bu/filea\b- min/p\bf/ot\fer_publica\stion_types/green_economics/economi\sc_benefits/economic_ben\s- efits.PDF . May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 11 The Clean Energy Program www.Third\fay.org Al\by, Josep\f E., an\b William A. Pizer. The Competitivenes\fs Impacts of Climat\fe Change Miti- gation Policies. Report. Resources For t\fe Future for T\fe Pew Center on\s Global Climate C\fange, May 2009. W\seb. 10 May 2010. Available at: \fttp://www.pewclimate.org/\bocUp- loa\bs/competitiveness-i\smpacts-report.p\bf.

Matt\fews, P\f.D., Kirstin\s R.W., Lauren Smulcer, Amy Meyers Jaffe, an\b Neal Lane, P\s\f.D. Be-yond Science: The \fEconomics and Polit\fics of Responding t\fo Climate Change. Conference Report. James A. Baker\s III Institute for Pub\slic Policy an\b Rice\s University, 9 Feb. 2008.

Web. 10 May 2010. Available at: \fttp://www.rice.e\bu/energy/publications/conf\serencere- port/EF-ST-pub-Beyon\bScienceCo\snfReport-121008.p\bf.

Key Findings from the Economic An\falysis of the USCAP\f Blueprint for Legi\fslative Action. Re-port. Unite\b States Clim\sate Action Partners\fip a\sn\b T\fe Pew Center on Gl\sobal Climate C\fange. Web. 10 May 2010. Available at: \fttp://www.pewclimate.org/\bocUploa\bs/US- CAP-economic-mo\belin\sg-backgroun\ber-12-02-09.PDF .

Unite\b States. Dept. of \sAgriculture. Office of t\fe C\fief Econo\smist, Economic Researc\f Service. A Preliminary Analysis \fof the Effects of HR 2454 on\f U.S. Agriculture. 22 July 2009. Web. 26 Apr. 2010. Available at: \fttp://www.us\ba.gov/oce/newsroom/arc\fives/ releases/2009files/HR245\s4.p\bf.

Unite\b States. Energy Information A\bministration.\s In\bepen\bent Statistics a\sn\b Analysis. Energy Market and Economi\fc Impacts of H.R. 2\f454, the American \fClean Energy and Security Ac\ft of 2009. 4 Aug. 2009. Web. 26 Apr. 2010. Available at: \fttp://www.eia.\boe.gov/oiaf/ser\s - vicerpt/\fr2454/backgroun\b.\ftml.

Unite\b States. Environmental Protection Agency (EPA). EPA Analysis of the W\faxman-Markey Discussion Draft: T\fhe American Clean E\fnergy and Security Ac\ft of 2009. Executive Sum- mary. 20 Apr. 2009. Web. 10 May 2010. Available at: \fttp://www.epa.gov/climatec\fang\se/ economics/p\bfs/WaxmanMarkeyExecutiveS\summary.p\bf.

Barker, Terry. The Macroeconomic Effects of the Transition to a Low-\fCar\fon Economy. Report. University of Cambri\bg\se. Web. 10 May 2010. Available at: \fttp://www.t\feclimategroup.

org/_assets/files/Macroeconomics-effects-of-t\fe-Low-Carbo\sn-Economy.p\bf.

Neu\foff, Karsten. Tackling Car\fon: How \fto Price Car\fon for\f Climate Policy. Report. Version 1.1. University of Ca\smbri\bge, 29 Sept. 200\s8. Web. 10 May 2010. Available at: \fttp://www.

eprg.group.cam.ac.uk/wp-c\sontent/uploa\bs/2009/0\s3/tackling-carbon_fin\sal_3009082.p\bf. May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 12 The Clean Energy Program www.Third\fay.org AP P e\b D I x 2 Impact of a Car\fon P\frice on Jo\f Creation FACT SOURCe Clean energy jo\f growth in US, 1998-2007: 9.1% The Clean Energy Economy: Repowering Jo\fs, Businesses and Investments Across America. Report. T\fe Pew C\faritable Trusts, June 2009. Web. 26 Apr. 2010. Available at:

\fttp://www.pewcenteront\festates.org/uploa\b - e\bFiles/Clean_Economy_Report_Web.p\bf .

Total jo\f growth in US, 1998-2007: 3.7% The Clean Energy Economy: Repowering Jo\fs, Businesses and Investments Across America. Report. T\fe Pew C\faritable Trusts, June 2009. Web. 26 Apr. 2010. Available at:

\fttp://www.pewcenteront\festates.org/uploa\b - e\bFiles/Clean_Economy_Report_Web.p\bf .

\bet jo\f creation estimated from a car\fon price included in Waxman-Markey legislation:

918,000 to 1.9 million jobs Rolan\b‐Holst, Davi\b, Fre\bric\f Ka\frl, Ma\b\fu K\fanna, an\b Jennifer Baka. Clean Energy and Climate Policy for U.S. Growth and Jo\f Creation An Economic Assessment of the American Clean Energy and Security Act and the Clean Energy Jo\fs and American Power Act. University of California, Berkeley an\b Yale University, 25 Oct. 2009. Web. 26 Apr. 2010.

Available at: \fttp://are.berkeley.e\bu/~\bwr\f/ CERES_Web/Docs/ES_DRHFK091024.p\bf .

\bet jo\f creation estimated from a car\fon price included in the Senate American Clean e nergy and Security Act: 1.7 million jobs Pollin, Robert, James Heintz, an\b Hei\bi Garrett-Peltier. The Economic Benefits of Investing in Clean Energy How the Economic Stimulus Program and New Legislation Can Boost U.S. Economic Growth and Employ - ment. Department of Economics an\b Political Economy Researc\f Institute (PERI) University of Massac\fusetts, Am\ferst an\b t\fe Center for American Progress, June 2009. Web. 26 Apr.

2010. Available at: \fttp://www.peri.umass.

e\bu/filea\bmin/p\bf/ot\fer_publication_types/ green_economics/economic_benefits/eco - nomic_benefits.PDF .

\bet jo\f creation estimated from a car\fon price included in the Senate American Clean energy and Security Act: 2.8 million net new jobs in 2020 Economic Impacts of Comprehensive Climate and Energy Policy: National Climate Change Stakeholder Recommendations and U.S. Sen - ate Proposals Would Advance Economy and Employment. Policy Maker Summary. Center for Climate Strategies, 23 Apr. 2010. Web. 10 May 2010. Available at: \fttp://www.climatestrate - gies.us/ewebe\bitpro/items/O25F23069.PDF . May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 13 The Clean Energy Program www.Third\fay.org Revenue generated for domestic agriculture from car\fon offsets included in Waxman- Markey legislation: $2 billion per year in real 2005 \bollars in t\fe near term, rising to about $28 billion per year in real 2005 \bollars by 2050 Unite\b States. Dept. of Agriculture. Office of t\fe C\fief Economist, Economic Researc\f Service. A Preliminary Analysis of the Ef - fects of HR 2454 on U.S. Agriculture. 22 July 2009. Web. 26 Apr. 2010. Available at: \fttp:// www.us\ba.gov/oce/newsroom/arc\fives/ releases/2009files/HR2454.p\bf . Impact of a Car\fon Price on energy efficiency FACT SOURCe e nergy cost savings from American Clean e nergy and Security Act: Approximately $750 per \fouse\fol\b by 2020 an\b $3,900 per \fouse - \fol\b by 2030 American Council for an Energy-Efficient Economy (ACEEE). H.R. 2454 Would Save $3,900 Per Household \fy 2030, Energy Ef - ficiency Provisions Will Create 650,000 Jo\fs \fy 2030. Press Release. 23 June 2009. Web.

10 May 2010. Available at: \fttp://www.aceee.

org/press/0906waxman.\ftm .

\bet energy \fill savings from energy efficiency:

$400 billion by 2030 Laitner, Jo\fn A. Climate Change Policy as an Economic Redevelopment Opportunity: The Role of Productive Investments in Mitigating Greenhouse Gas Emissions. Report. American Council for an Energy-Efficient Economy, Oct.

2009. Web. 10 May 2010. Available at: \fttp:// www.aceee.org/pubs/e098.\ftm .

Impact on household income from energy efficiency savings: Increase of between $488 to $1,176 by 2020 Rolan\b‐Holst, Davi\b, Fre\bric\f Ka\frl, Ma\b\fu K\fanna, an\b Jennifer Baka. Clean Energy and Climate Policy for U.S. Growth and Jo\f Creation An Economic Assessment of the American Clean Energy and Security Act and the Clean Energy Jo\fs and American Power Act. University of California, Berkeley an\b Yale University, 25 Oct. 2009. Web. 26 Apr. 2010.

Available at: \fttp://are.berkeley.e\bu/~\bwr\f/ CERES_Web/Docs/ES_DRHFK091024.p\bf .

Value of gross energy savings in U.S.: More t\fan $1.2 trillion C\foi Grana\be, Hanna\f, Jon Creyts, Anton Derkac\f, P\fillip Farese, Scott Nyquist an\b Ken Ostrowski Unlocking Energy Efficiency in the U.S. Economy. Report. McKinsey Global Energy an\b Materials, July 2009. Web. 26 Apr.

2010. Available at: \fttp://www.mckinsey.com/ clientservice/electricpowernaturalgas/\bown - loa\bs/us_energy_efficiency_full_report.p\bf . May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 14 The Clean Energy Program www.Third\fay.org Impact of a Car\fon Price on Investment FACTSOURCe Capital market investment in clean energy in 2007: ~$150 billion Investing in Climate Change 2009 Necessity and Opportunity in Tur\fulent Times. Execu- tive Summary. DWS Investments, Oct. 2008.

Web. 26 Apr. 2010. Available at: \fttps://www.

\bws-investments.com/EN/\bocs/pro\bucts/ Climate_C\fange_W\fite_Paper_ExecSum - mary_Public.p\bf .

e xpected annual capital market investment in clean energy \fy 2027: $650 billion Investing in Climate Change 2009 Necessity and Opportunity in Tur\fulent Times. Execu- tive Summary. DWS Investments, Oct. 2008.

Web. 26 Apr. 2010. Available at: \fttps://www.

\bws-investments.com/EN/\bocs/pro\bucts/ Climate_C\fange_W\fite_Paper_ExecSum - mary_Public.p\bf .

Cumulative net new investment in U.S. associated with capturing 3 gigatons per year of a\fatement through to 2030: $1.1 trillion Bein\focker, Eric, Jeremy Oppen\feim, Ben Irons, Makreeta La\fti, Diana Farrell, Scott Nyquist, Jaana Remes, Tomas Naucler, an\b Per-An\bers Nauclér. The Car\fon Productiv - ity Challenge: Cur\fing Climate Change and Sustaining Economic Growth. Rep. McKinsey Global Institute, McKinsey Climate C\fange Special Initiative, June 2008. Web. 26 Apr.

2010. Available at: \fttp://www.mckinsey.com/ mgi/reports/p\bfs/Carbon_Pro\buctivity/MGI_ carbon_pro\buctivity_full_report.p\bf . Impact of a Car\fon Price on Oil Imports FACT SOURCe U.S. oil consumption with a price on car\fon:

-7 to 8 million barrels per \bay after 2020 Stanton, C\fris, comp. Oil Demand Threat- ened \fy Big Shift to Green Policies. T\fe National. 2 Mar. 2010. Web. 26 Apr. 2010.

Available at: \fttp://www.t\fenational.ae/ apps/pbcs.\bll/article?AID=/20100302/BUSI - NESS/703029865/1050/ .

Annual energy savings from reduced oil consumption: $900 billion annually by 2020 (assuming an average oil price \buring t\fe perio\b of $50 per barrel—\fig\fer oil prices woul\b mean \fig\fer returns) Bein\focker, Eric, Jeremy Oppen\feim, Ben Irons, Makreeta La\fti, Diana Farrell, Scott Nyquist, Jaana Remes, Tomas Naucler, an\b Per-An\bers Nauclér. The Car\fon Productiv - ity Challenge: Cur\fing Climate Change and Sustaining Economic Growth. Rep. McKinsey Global Institute, McKinsey Climate C\fange Special Initiative, June 2008. Web. 26 Apr.

2010. Available at: \fttp://www.mckinsey.com/ mgi/reports/p\bfs/Carbon_Pro\buctivity/MGI_ carbon_pro\buctivity_full_report.p\bf . May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 15 The Clean Energy Program www.Third\fay.org The Question of GDP FACTSOURCe GDP growth, with a price on car\fon, 2009- 2030: +75% (Increase in $10.3 trillion, from $13.7 trillion in 2009 to $24 trillion) Pollin, Robert, an\b Ben Zipperer. Car\fon Cap Critics Predict Healthy Economy under Cap- and-Trade. Car\fon Cap Critics Predict Healthy Economy under Cap-and-Trade. Political Economy Researc\f Institute, University of Mas - sac\fusetts, Am\ferst. Web. 26 Apr. 2010. Avail - able at: \fttp://www.peri.umass.e\bu/filea\bmin/ p\bf/ot\fer_publication_types/green_econom - ics/fact_s\feets/Unite\bStates.p\bf.

Accumulated impact of a price on car\fon on US GDP, 2010-2050: -2.5% McKibbin, Warwick, A\bele Morris, Peter J.

Wilcoxen, an\b Yiyong Cai. Consequences of Alternative U.S. Cap-and-Trade Policies:

Controlling Both Emissions and Costs. T\fe Brookings Institution, 24 July 2009. Web. 26 Apr. 2010. Available at: \fttp://www.brook- ings.e\bu/~/me\bia/Files/rc/reports/2009/07_ cap_an\b_tra\be/0727_cost_containment.p\bf .

Impact on GDP of a target of reducing emissions to 450 parts per million: Less t\fan -0.6 percent of GDP Bein\focker, Eric, Jeremy Oppen\feim, Ben Irons, Makreeta La\fti, Diana Farrell, Scott Nyquist, Jaana Remes, Tomas Naucler, an\b Per-An\bers Nauclér. The Car\fon Productiv - ity Challenge: Cur\fing Climate Change and Sustaining Economic Growth. Rep. McKinsey Global Institute, McKinsey Climate C\fange Special Initiative, June 2008. Web. 26 Apr.

2010. Available at: \fttp://www.mckinsey.com/ mgi/reports/p\bfs/Carbon_Pro\buctivity/MGI_ carbon_pro\buctivity_full_report.p\bf .

Impact of a price on car\fon on glo\fal economic growth, as percentage of GDP:

+0.08 to—0.12% Barker, Terry. The Macroeconomic Effects of the Transition to a Low-Car\fon Economy.

Report. University of Cambri\bge. Web. 10 May 2010. Available at: \fttp://www.t\feclimat- egroup.org/_assets/files/Macroeconomics- effects-of-t\fe-Low-Carbon-Economy.p\bf .

Impact of a car\fon price on GDP from 2010- 2030: -0.5 to -2.3% (104 billion to $453 billion) Unite\b States. Energy Information A\bminis - tration. In\bepen\bent Statistics an\b Analysis.

Energy Market and Economic Impacts of H.R.

2454, the American Clean Energy and Secu - rity Act of 2009. 4 Aug. 2009. Web. 26 Apr.

2010. Available at: \fttp://www.eia.\boe.gov/ oiaf/servicerpt/\fr2454/backgroun\b.\ftml . May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 16 The Clean Energy Program www.Third\fay.org e \b D \b O TeS 1 Many of t\fe reports we examine\b \bo n\sot focus on t\fe mec\fan\sism for pricing carb\son – i.e, t\froug\f a market-base\b sys\stem like cap an\b tra\be \sor cap an\b \bivi\ben\b o\sr a carbon fee. T\fis \s paper also \boes not tak\se a position on t\fe mo\sst effective way of implem\senting a price on car\sbon an\b instea\b seeks to \betermine if t\fe likely im\spact a price woul\b \fa\sve on t\fe economy.

2 Stu\bies not use\b in t\fis \spaper inclu\be:

An\berson, Terry, an\b Gary D. Libeca\sp. “Property Rig\fts, Free\bom an\b Prosperity:

Cap an\b Tra\be: An Inconvenient \sTax.” Defining Ideas 2010\f, No. 1. Hoover Instit\sution, Stanfor\b University. Web. 10 May 2010. Available at: \fttp://www.\foover.org/publications/ \befiningi\beas/87684927\s.\ftml.

Beac\f, William, Karen Campbell, P\f.D., \sDavi\b Kreutzer, P\f.D., an\b Ben Lie\sberman. “T\fe Economic Impact of \sWaxman-Markey.” The Heritage Found\fation. 13 May 2009. Web. 10 May 2010. Available at: \fttp://www.\feritage.org/Researc\f/Reports/2009/05/T\fe\s-Economic-Impact- of-Waxman-Markey .

Cato Hand\fook for P\folicy Makers. 7t\f E\bition. Cato Ins\stitute. Web. 10 May 2010.

Available at: \fttp://www.cato.org/pubs/\fan\bbook/\fb11\s1/\fb111-45.p\bf.

Climate Change in t\fhe United States: \fThe Prohi\fitive Costs of \fInaction. Report. Union of Concerne\b Scientists, 10 Sept.\s 2009. Web. 10 May 2010. Available at: \fttp://www.ucsusa.org/ assets/\bocuments/global\s_warming/climate-costs-of\s-inaction.p\bf.

Doniger, Davi\b, an\b Antonia\s Herzog. Analysis of H.R. 24\f54, the American C\flean Energy and Security Act (A\fCES). Issue brief. National\s Resources Defense Council (\sNRDC), Sept. 2009.

Web. 10 May 2010. Available at: \fttp://www.nr\bc.org/globalWarming/files/ACESLegFS.\sp\bf.

Green, Kennet\f P., Steven F. Haywar\b, an\b Kevin A. Hasse\stt. “Climate C\fange: C\saps vs.

Taxes.”AEI Outlook Series,\f No. 2. American En\sterprise Institute for Pu\sblic Policy Researc\f, June 2007. Web. 10 May 2010. Available at: \fttp://www.aei.org/outlook/26286.

Helper, Susan. Renewing U.S. Manuf\facturing: Promoting a High-Roa\fd Strategy. Briefing Paper #212. Economi\sc Policy Institute, 13\s Feb. 2008. Web. 10 May 2010. Available at: \fttp:// www.s\fare\bprosperity.org/bp212/bp212.p\bf.

Working for the Clim\fate Renewa\fle Energy and the Green Jo\f [R]evolutio\fn. Publication.

Greenpeace an\b t\fe European Renewable Energy Council, 14 Sept.\s 2009. Web. 10 May 2010. Available at: \fttp://www.greenpeace.org/international/Global/inte\srnational/planet-2/ report/2009/9/working-\sfor-t\fe-climate.p\bf.

3 “Labor Force Statistics from t\fe Current Population Survey\s.” Unemployment Rate.\s Bureau of Labor Statistic\ss, 10 May 2010. Web. 10 May 2010. Available at: \fttp://\bata.bls.gov/ PDQ/servlet/SurveyOutpu\stServlet?series_i\b=LNS14\s000000.

4 Gol\bman, Davi\b. “\sWorst Year for Jobs since ‘4\s5.” Special Report I\sssue #1: America’s Money Crisis, CnnMon\sey.com. 9 Jan. 2009.\s Web. 10 May 2010. Available at: \fttp://money.cnn.

com/2009/01/09/news\s/economy/jobs_\becembe\sr/.

5 Krasner-K\fait, Barbara. “T\fe \sImpact of Refrigeratio\sn.” History Magazine.\s Feb.-Mar.

2009. Web. 10 May 2010. Available at: \fttp://www.\fistory-magazine.com\s/refrig.\ftml.

6 Grum\faus, Au\brey D. “T\fe Clackety-c\slack Ping! Mac\fines \sStill Have T\feir Plac\se.” T\fe Sy\bney Morning Heral\b. 17 Mar. 1986. Web. 10 May 2010. Available at: \fttp:// news.google.com/newsp\sapers?ni\b=1301&\bat=198\s60317&i\b=qbMyAAAAIB\sAJ&sji\b=L- gDAAAAIBAJ&pg=3750\s,774598. May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 17 The Clean Energy Program www.Third\fay.org 7 Nonnenmac\fer, Tomas. “History of t\fe \sU.S. Telegrap\f In\bustry”. EH.\sNet Encyclope\bia, e\bite\b by Robert W\faples\s. August 14, 2001. A\svailable at: \fttp://e\f.net/encyclope\b\sia/article/ nonnenmac\fer.in\bustry.telegrap\fic.us.

8 “STOP — Telegram Era Over, Western Union Says Instant-\smessaging of Its Day \sMa\be Obsolete by Telep\fone, Internet.” MSNBC.com. Asso\sciate\b Press, 2 Feb. 2006. Web. 10 May 2010. Available at: \fttp://www.msnbc.msn.com/i\b/11\s147506/.

9 The Clean Energy Economy: Repower\fing Jo\fs, Businesse\fs and Investments \fAcross America. Rep. T\fe Pew C\faritab\sle Trusts, June 2009. Web. 26 Apr. 2010. Available at: \fttp:// www.pewcenteront\festates.org/uploa\be\bFiles/Clean\s_Economy_Report_Web.p\bf.

10 Ibi\b.

11 Unite\b States. Cong. Co\sngressional Bu\bget Office. The Economic Effects of Legislation\f to Reduce Greenhouse-Gas Emiss\fions. 111t\f Cong., 1st sess.\s Cong. Rept. 4001. S\sept.

2009. Web. 26 Apr. 2010. Available at: \fttp://www.cbo.gov/ftp\bocs/105\sxx/\boc10573/09-17- Green\fouse-Gas.p\bf.

12 Unite\b States. Environmental Protection Agency (EPA). EPA Analysis of the W\faxman- Markey Discussion \fDraft: The American\f Clean Energy and Security Ac\ft of 2009. 20 Apr.

2009. Web. 26 Apr. 2010. Available at: \fttp://www.epa.gov/climatec\fang\se/economics/p\bfs/ WaxmanMarkeyExecutiveS\summary.p\bf.

13 Rolan\b‐Holst, Davi\b, \sFre\bric\f Ka\frl, Ma\b\fu K\fa\snna, an\b Jennifer Ba\ska. Clean Energy and Climate Policy \ffor U.S. Growth and Jo\f Creation An Economic\f Assessment of the \fAmerican Clean Energy and Security Ac\ft and the Clean Ene\frgy Jo\fs and America\fn Power Act. University of California, Berkeley an\b Yale University, 25 Oct. 2009. Web. 26 Apr. 2010. Available at: \fttp:// are.berkeley.e\bu/~\bwr\f/CERES_Web/Docs/ES_DRHFK091\s024.p\bf.

14 Pollin, Robert, James\s Heintz, an\b Hei\bi Ga\srrett-Peltier. The Economic Benefi\fts of Investing in Clean \fEnergy How the Economic\f Stimulus Program and New Legis\flation Can Boost U.S. Economic Growth and Employment\f. Department of Econom\sics an\b Political Ec\sonomy Researc\f Institute (PERI) Un\siversity of Massac\fusetts\s, Am\ferst an\b t\fe Center f\sor American Progress, June 2009. Web. 26 Apr. 2010. Available at: \fttp://www.peri.umass.e\bu/filea\bm\sin/p\bf/ ot\fer_publication_types\s/green_economics/economi\sc_benefits/economic_ben\sefits.PDF .

15 Willis, Gerry. “Demystifying Green Jobs.” CnnMoney.com. 9 Dec. 2009. \sWeb. 10 May 2010. Available at: \fttp://money.cnn.com/2009/12/0\s9/pf/saving/green_jobs/in\bex.

\ftm?postversion=200912\s0911.

16 As t\fe nation moves to \sclean energy, many communities c\surrently \bepen\bent on carbon-intensive energy will be a\bversely \saffecte\b by t\fe transition.\s T\fir\b Way proposes to create a Clean Energy Business Zone program (CBiZ) to provi\be t\fese communities \st\fe financial incentives t\fey nee\b to a\sttract new businesses an\b\s a\b\b jobs in a sector \sof t\fe economy t\fat is \s critical for our futu\sre an\b poise\b for signi\sficant expansion. Available at: \fttp://content.t\fir\bway.

org/publications/195/T\s\fir\b_Way_I\bea_Brief_-_Clean\s_Energy_Business_Zones.p\bf.

17 Unite\b States. Dept. of \sAgriculture. Office of t\fe C\fief Econo\smist, Economic Researc\f Service. A Preliminary Analysis \fof the Effects of HR 2454 on\f U.S. Agriculture. 22 July 2009. Web.

26 Apr. 2010. Available at: \fttp://www.us\ba.gov/oce/newsroom/arc\fives/releases/2009files/ HR2454.p\bf. May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 18 The Clean Energy Program www.Third\fay.org 18 T\fese regional \bisparities reinforce t\fe fact t\fat t\fe benefi\sts of broa\b job creation spurre\b by a carbon price \sare limite\b primarily to\s t\fose w\fo fin\b employm\sent in t\fe clean energy workforce. If t\fe benefits of c\slean energy are limite\b to jobs, it r\sisks causing t\fe same \bivi\be between t\fe \fig\f te\sc\f centers on t\fe coasts \san\b t\fe rest of t\fe country t\fat w\se saw at t\fe \feig\ft of t\fe tec\fnolo\sgy boom in t\fe 1990s,\s leaving out t\fe 90-p\slus percent of Americans w\fo are not in t\fe \fig\f tec\f se\sctor, an\b w\fo may alrea\by feel left out an\b \signore\b by t\fe mo\bern economy.

19 Goo\bstein, Eban. Glo\fal Warming, Jo\fs, and Com\fpetitiveness. Policy brief no. 1\s0. Bar\b Center for Environmental Policy, Economics for Equ\sity an\b t\fe Environment Network, Apr. 2009.

Web. 26 Apr. 2010. Available at: \fttp://www.e3network.org/briefs/Goo\bstein_Glo\sbal_Warming_ Jobs_an\b_Competitivene\sss.p\bf.

20 Energy Efficiency: Creates Jo\fs in State\fs While Reducing Co\fnsumer Bills. Ameri\fcan Council for an Ener\fgy-Efficient Economy (ACE\fEE), 9 Sept. 2009. Web. 26 Apr. 2010. Available at:

\fttp://www.aceee.org/energy/national/State_by_\sState_Summary.p\bf.

21 (Rolan\b‐Holst, Davi\b,\s Fre\bric\f Ka\frl, Ma\b\fu K\fa\snna, an\b Jennifer Ba\ska).

22 Laitner, Jo\fn A. Climate Change Poli\fcy as an Economic \fRedevelopment Oppor\ftunity:

The Role of Productive Investmen\fts in Mitigating G\freenhouse Gas Emiss\fions. Report. American Council for an Energy-Efficient Economy, Oct. 2009. Web. 10 May 2010. Available at: \fttp:// www.aceee.org/pubs/e098.\ftm.

23 C\foi Grana\be, Hanna\f,\s Jon Creyts, Anton Derkac\f, P\s\fillip Farese, Scott Nyquist an\b Ken Ostrowski Unlocking Energy Efficiency in the U.S\f. Economy. Rep. McKinsey Glob\sal Energy an\b Materials, Jul\sy 2009. Web. 26 Apr. 2010. Available at: \fttp://www.mckinsey.com/ clientservice/electricpo\swernaturalgas/\bownloa\bs/u\ss_energy_efficiency_full_report.p\bf.

24 “House Climate an\b En\sergy Legislation.” Rev. of H.R. 2454, The\f American Clean Ene\frgy and Security Act o\ff 2009 (ACES). American Council f\sor an Energy-Efficient Economy. Web. 26 Apr. 2010. Available at: \fttp://aceee.org/energy/national/\fouseenergyan\bclimate.\ftm.

25 T\fe primary barriers to \s\fomeowner investments in\s energy savings are t\fe \fig\f upfront costs, an\b t\fe fact t\fat \s\fomeowners may move b\sefore t\fe costs of t\fe investm\sent are recoupe\b. To eliminate t\fese barrie\srs in rural areas – w\fere t\fese problems are particularly acute –\s T\fir\b Way \fas propose\b t\fe Rural Energy Savings Program. Available at: \fttp://www.t\fir\bway.org/ subjects/9/publicatio\sns/219.

26 Investing in Climate Change 2009 Necessity and Opportunity in Tur\fulent Times. Executive Summary. DWS Investments, Oct. 2008. Web. 26 Apr. 2010. Available at: \fttps://www.\bws- investments.com/EN/\bocs/pro\bucts/Climate_C\fange_W\fite_Paper_ExecSummary_Public.p\bf .

27 It is critical t\fat a s\significant increase in fe\beral support \sfor energy R&D compliments t\fe increase in private sector i\snvestment in clean ener\sgy tec\fnologies likely\s to be create\b by a carbon price. T\fir\b Way offers a roa\bmap for increasing fe\beral R&D in\svestments. Available at:

\fttp://www.t\fir\bway.org/subjects/9/publicat\sions/190.

28 Fulton, Mark, Bruce M\s. Ka\fn, Mark Domini\sk, Emily Soong, Ja\ske Baker, an\b Lucy Cotter.

Creating Jobs & Growt\f T\fe German Green Experience. Rep. D\sB Climate C\fange A\bvi\ssors, 14 Sept. 2009. Web. 26 Apr. 2010. Available at: \fttp://www.\bbcca.com/\bbcca/EN\s/_me\bia/DBCCA_ Creating_Jobs_an\b_Growt\f_T\fe_German_Green_Exp.p\bf.

29 Carraro, Carlo, Valentina Bosetti, Alessa\sn\bra Sgobbi, an\b Mas\ssimo Tavoni. The Economics of Climat\fe Change. Online Power Point. \sOrganisation for Econo\smic Co-Operation an\b Development, 12 M\sar. 2008. Web. 26 Apr. 2010. Available at: \fttp://www.oec\b.org/ \bataoec\b/36/52/402765\s73.p\bf. May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 19 The Clean Energy Program www.Third\fay.org 30 Bein\focker, Eric, Jeremy Oppen\feim, Ben Ir\sons, Makreeta La\fti, Diana Farr\sell, Scott Nyquist, Jaana Remes,\s Tomas Naucler, an\b Per-An\bers Nauclér. The Car\fon Productivity Challenge: Cur\fing C\flimate Change and S\fustaining Economic\f Growth. Rep. McKinsey Globa\sl Institute, McKinsey Cli\smate C\fange Special I\snitiative, June 2008.\s Web. 26 Apr. 2010. Available at: \fttp://www.mckinsey.com/mgi/reports/p\bfs/Carbon_Pro\buctivity/MGI_carbon\s_pro\buctivity_ full_report.p\bf.

31 Wolstencroft, Tracy R. In My View: Investing in M\farkets for a Low-ca\fr\fon World.

Publication. Gol\bman\s Sac\fs, Private Wealt\f Forum. Web. 26 Apr. 2010. Available at: \fttp:// www2.gol\bmansac\fs.co\sm/i\beas/environment-an\b-energy/gol\bman-sac\fs/low\s-carbon-worl\b.p\bf.

32 Doerr, Jo\fn, an\b Jeff Immelt. “Falling B\se\fin\b On Green Tec\f.” T\fe Was\fington Post. 3 Aug. 2009. Web. 26 Apr. 2010. Available at: \fttp://www.was\fingtonpost.com/w\sp-\byn/content/ article/2009/08/02/A\sR2009080201563.\ftml?\ssi\b=ST2009080201678\s.

33 Cisc\fke, Sue. “For\b’s Actions Speak to Cl\simate C\fange Position.\s” Web blog post. T\fe Huffington Post. 15 Jan.\s 2010. Web. 26 Apr. 2010. Available at: \fttp://www.\fuffingtonpost.com/ sue-cisc\fke/for\bs-actions-speak-to-cl\s_b_424884.\ftml.

34 Pew Study: China Le\fads G-20 Mem\fers in\f Clean Energy Finance and Inv\festment. PR Newswire. Pew Environment Group, 25 Mar. 2010. Web. 26 Apr. 2010. Available at: \fttp://www.

prnewswire.com/news-releases/pew-stu\by-c\fina-\slea\bs-g-20-members-in-\sclean-energy-finance- an\b-investment-8908425\s2.\ftml.

35 Osnos, Evan. “Green Giant: Beijing’s Cras\f Program for Clean Energy.” T\fe New Yorker. 21 Dec. 2009. Web. 26 Apr. 2010. Available at: \fttp://www.newyorker.com/ reporting/2009/12/21/\s091221fa_fact_osnos.

36 Aut\for’s calculation at $80\s per barrel. “Oil Cru\be an\b Pe\stroleum Pro\bucts Explaine\b: Oil\s Imports an\b Exports.” \sEnergy Explaine\b. U.S. \sEnergy Information A\bministration,\s In\bepen\bent Statistics an\b Analysis\s, 23 Feb. 2010. Web. 10 May 2010. Available at: \fttp://tonto.eia.\boe.go\sv/ energyexplaine\b/in\bex.cfm\s?page=oil_imports.

37 Lefton, Rebecca, an\b \sDaniel J. Weiss. Oil Dependence Is a\f Dangerous Ha\fit. Issue Alert. Center for American P\srogress, 13 Jan. 2010. W\seb. 26 Apr. 2010. Available at: \fttp://www.

americanprogress.org/issues/2010/01/oil\s_imports_security.\ftml.

38 Stanton, C\fris, comp.\s “Oil Deman\b T\freatene\b by Big S\fift to\s Green Policies.” T\fe National. 2 Mar. 2010. Web. 26 Apr. 2010. Available at: \fttp://www.t\fenational.ae/apps/p\sbcs.\bll/ article?AID=/2010030\s2/BUSINESS/7030298\s65/1050/.

39 U.S. Energy Information A\bministration.\s In\bepen\bent Statistics a\sn\b Analysis. Crude Oil and Total Petroleum Imports Top 15 Countries. 8 Apr. 2010. Web. 26 Apr. 2010. Available at:

\fttp://www.eia.\boe.gov/pub/oil\s_gas/petroleum/\bata_publicatio\sns/company_level_imp\sorts/ current/import.\ftml.

40 Barker, Terry. The Macroeconomic Effects of the Transition to a Low-\fCar\fon Economy.

Briefing Paper. T\fe Climate Group an\b t\fe University \sof Cambri\bge. Web. 26 Apr. 2010.

Available at: \fttp://www.t\feclimategroup.org/_assets/files/Macroeconomics-effects-of-t\fe-Low- Carbon-Economy.p\bf.

41 McKibbin, Warwick J., A\bele Morr\sis, Peter J. Wilcoxen, an\b Yiyong Cai. Consequences of Alternative U.S. Cap-an\fd-Trade Policies: Cont\frolling Both Emissio\fns and Costs. T\fe Brookings Institution, 24 July \s2009. Web. 26 Apr. 2010. Available at: \fttp://www.brookings.e\bu/~/me\bia/ Files/rc/reports/2009/07_cap_an\s\b_tra\be/0727_cost_conta\sinment.p\bf.

42 U.S. Energy Information A\bministration.\s In\bepen\bent Statistics a\sn\b Analysis. Energy Market and Economi\fc Impacts of H.R. 2\f454, the American \fClean Energy and Security Ac\ft of 2009. 4 Aug. 2009. Web. 26 Apr. 2010. Available at: \fttp://www.eia.\boe.gov/oiaf/ser\svicerpt/ \fr2454/backgroun\b.\ftml. May 2010 Putting a Price on\f Success: The Case\f for Pricing Car\fon\f - 20 The Clean Energy Program www.Third\fay.org 43 Pollin, Robert, an\b B\sen Zipperer. Car\fon Cap Critics \fPredict Healthy Econo\fmy under Cap-and-Trade. Car\fon Cap Cr\fitics Predict Healthy Econo\fmy under Cap-and-T\frade. Political Economy Researc\f Institute, University\s of Massac\fusetts, Am\fer\sst. Web. 26 Apr. 2010. Available at: \fttp://www.peri.umass.e\bu/filea\bm\sin/p\bf/ot\fer_publicati\son_types/green_economics/fact_ s\feets/Unite\bStates.p\bf.

44 T\fe PERI analysis is \spre\bicate\b on t\fe mo\beling\s of allowance prices\s un\ber t\fe Lieberman-Warner Climate Security A\sct. Analysis of T\fe L\sieberman-Warner Climate Security Act (S. 2191). Repor\st. American Council \sfor Capital Formation an\b t\fe Nationa\sl Association of Manufacturers, 13 Mar. 2008. Web. 10 May 2010. Available at: \fttp://www.accf.org/me\bia/ \bynamic/1/me\bia_190.\sp\bf.

45 (Pollin, Robert an\b B\sen Zipperer) 46 U.S. Energy Information A\bministration.\s In\bepen\bent Statistics a\sn\b Analysis. Energy Consumption, Expen\fditures, and Emissions \fIndicators, 1949-2\f008. Web. 26 Apr. 2010. Available at: \fttp://www.eia.\boe.gov/emeu/aer/\stxt/ptb0105.\ftml.

47 (Barker, Terry)