Why will energy prices increase under a regional cap-and-trade policy?
The cost of carbon (the cost of compliance with a carbon reduction cap) will impact energy prices. This carbon cost will filter throughout the economy and impact everything from electricity rates to gasoline prices. And as the carbon cost directly impacts various energy sources, it inevitably impacts the cost of manufacturing, producing and transporting goods. These cost increases are felt directly by consumers in their household energy prices and increased costs for consumer goods and services.
Related Questions
- Was it "off limits" to talk about policy impacts (for example, potential impacts of Kyoto on the energy sector) at the regional workshops?
- How are the usual suspects affecting the economy and markets: the Fed, fiscal policy, and energy prices?
- Does the USF benefit take into account that energy prices may increase during the year?
