Federal Climate Change Legislation FAQ

How will this bill affect:

1. Fuel Prices?
2. Electricity Costs?
3. Unemployment?
4. Climate Change/Global Warming?

1. How will this bill affect my fuel prices?

The American Petroleum Institute (API) economic analysis* estimates that the House-passed climate change legislation could result in a gasoline price increase of 77 cents per gallon price. This means a 20 gallon fill-up will cost you an additional $15.40. Assuming a family uses 20 gallons of gasoline a week, this is an additional $800 a year. Another analysis estimates that by 2035, inflation-adjusted gasoline prices will rise by 74 percent. (1)

2. How will this bill affect my electricity costs?

The Heritage Foundation’s economic analysis estimates that the typical family of four will see its direct energy costs rise by $1,241 per year. The estimated family electric bill will be $9,410 more in total from 2012 to 2035. (1) This burden falls even greater on the working poor, who cannot afford to replace appliances and weatherize their homes.

3. How will this bill affect jobs and unemployment?

Various studies agree that significant job losses will occur as a result of this legislation. One estimates that job losses will average over 1.14 million at any given time from 2012-2035. In some years, climate change legislation increases unemployment by nearly 2.5 million Americans. (1)

A study examining Spain’s attempt at creating “green” jobs has found that at least 2.2 other jobs were lost for every “green” job created. The study projects that if the U.S. follows Spain’s lead, 6.6 to 11 million jobs will be lost. (2)

4. How will the bill affect climate change/global warming?

Many scientists concur that the cap-and-trade measure in the proposed climate change bill will not significantly impact or reverse climate change/global warming. Over 100 top scientists have signed an ad confirming this. (3)

According to renowned climatologist Chip Knappenberger, current federal climate change legislation would moderate temperatures by only hundredths of a degree in 2050 and no more than two-tenths of a degree at the end of the century. (4)

The U.S. Environmental Protection Agency’s (EPA) own analysis demonstrates that significant greenhouse gas emission reductions cannot occur without aggressive action by China, India and other developing countries. Administrator Lisa Jackson agreed during a Senate Environment and Public Works Committee hearing. She stated, “I believe the central parts of the [EPA] chart are that U.S. action alone will not impact world CO2 levels.” China has not indicated an interest in reducing CO2 and India has emphatically opposed any CO2 regulations. (5)


(1) The Heritage Foundation
(2) “Study of the effects on employment of public aid to renewable energy sources” by Garbriel Calzada Alvarez PH.D.
(3) The Cato Institute
(4) MasterResource
(5) U.S. Senate Committee on Environment and Public Works


*Based on allowance costs in the Congressional Budget Office’s (CBO) study