Green Regs Could Cost 4 Million Jobs

Oct. 15, 2009
Everybody wants to know—and rightly so—exactly how much it would cost the U.S. economy if we went ahead and adopted regulations that would restrict the amount of greenhouse gases companies could emit. One answer, based on a study conducted by the ...

Everybody wants to know—and rightly so—exactly how much it would cost the U.S. economy if we went ahead and adopted regulations that would restrict the amount of greenhouse gases companies could emit. One answer, based on a study conducted by the Economic Policy Institute (EPI), is: 4 million jobs.

The non-partisan Alliance for American Manufacturing (AAM) has taken a look at the report, and concluded that legislation currently pending in the U.S. Senate “should include a steady and sufficient supply of emission allowances for energy-intensive, trade-sensitive industries to rebate the cost of compliance, as well as a border adjustment fee on the carbon content of goods from countries that fail to regulate greenhouse gases (GHGs) emitted in the production of goods.”

However, the AAM adds, there’s a very real risk that climate legislation could seriously damage any chances for a near-term economic recovery, particularly if U.S. manufacturers decide it’s far easier and cheaper to step up offshoring efforts than attempt to meet the GHG regulations.

Robert E. Scott, author of the EPI study, predicts two things could happen if the climate change legislation ignores the effects such policies could have on trade:

1. “Production of energy-intensive manufactured goods, especially price-sensitive manufactured products that already face high levels of import competition, could rapidly be outsourced to countries like China and India that do not restrict GHG emissions. This could lead to job losses in manufacturing and related industries, and to a growing trade deficit.”

2. “Increased production of energy-intensive goods such as iron and steel, pulp and paper, basic chemicals and glass products in developing countries would be likely to increase net global GHG emissions,” a process known as carbon leakage.

“The stakes are simply too great, and the potential damage to the economy and environment too large, if we fail to adequately address the trade-related implications of climate change,” adds Scott Paul, executive director of the AAM.

The full report can be found here.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!