Cap & Trade Effects on Mississippi

Economic Impact of Waxman Markey Cap-and-Trade Bill

Through extensive economic modeling of the "American Clean Energy and Security Act of 2009",--a Heritage Foundation--analysis shows economic losses at the national, state and congressional district level.

National Impact

By 2035 gasoline prices will have increased by 58%, Electricity 90%, Natural Gas 55%, and Heating Oil 56%, for a $1,241 increase on the average family of four. The total tax impact (includes energy costs above) is $4,600.

Average job loss between 2012 and 2035 is 1,145,000 and total GDP losses of $9.4 trillion.

Increase in national debt burden per family of four of $114,915 by 2035.

State-Impact on Mississippi

Electricity prices in Mississippi are likely to be higher than our national estimates because of the shortfall in trade allowances Mississippi is projected to have. The renewable portfolio mandates provision in the bill is also concerning.

By 2035, Mississippi will have 24,000 fewer jobs than could otherwise be expected, including over 9,000 fewer jobs in both the manufacturing and construction sectors. This includes any net "green jobs" that may be added.

Mississippi would experience state GDP loss of $3.4 billion by 2035.

Policies that decrease economic output in the states will make it even harder to meet state budgets in the future, and Waxman-Markey would increase future budget gaps. In 2012 alone, any operating budget shortfall would increase by $45 million.

Impact on 1st Congressional District of Mississippi

With the 55^th poorest district in the country with a median household income (2007 data) of $38,015, your constituents will have a disproportionally difficult time paying for the increased energy costs they are going to face due to this bill, because low-income families spend a larger portion of their budget on energy costs.

At the congressional district level our analysis finds job losses in many important economic sectors including construction, retail trade, wholesale, and manufacturing.

Energy intensive sectors of the economy are particularly hit hard by this bill especially manufacturing.

According to U.S. census data, your district has over 64,000 people employed in the manufacturing sector, which is 20% of your total work force.

The Congressional district has over 17,500 farm operators with a value of products sold of over $515,186,000.

Though Waxman-Markey leads to increased food prices, farm costs rise even faster. Our analysis of the impact on the Agriculture sector found an average drop in net farm income of 57% for the years 2012 to 2035. The increase in food prices will be a special problem for those on fixed incomes and for low income households.

Impact on 2nd Congressional District of Mississippi

With the 3^rd poorest district in the country with a median household income (2007 data) of $30,040, your constituents will have a disproportionally difficult time paying for the increased energy costs they are going to face due to this bill, because low-income families spend a larger portion of their budget on energy costs.

At the congressional district level our analysis finds job losses in many important economic sectors including manufacturing (loss of 5,700; highest in the state), construction, retail trade, and wholesale.

Energy intensive sectors of the economy are particularly hit hard by this bill, especially manufacturing. According to U.S. census data, your district has over 33,000 people employed in the manufacturing sector, which is 12.5% of your total work force.

The Congressional district has over 13,000 farm operators with a value of products sold of over $1,691,439,000.

Though Waxman-Markey leads to increased food prices, farm costs rise even faster. Our analysis of the impact on the Agriculture sector found an average drop in net farm income of 57% for the years 2012 to 2035. The increase in food prices will be a special problem for those on fixed incomes and for low income households.

Global Temperature Change

With all of the economic pain caused by this bill across the country one must ask what do we gain from all of this pain. Climatologist Chip Knappenberger estimated using the IPPC climate sensitivity model that by the year 2100 this bill would reduce global temperature by .2 degrees C.