Results from the model, which can only be interpreted as the first-order effects of the policy, imply that in response to a $20 tax on CO2 emissions, energy commodities such as natural gas, electricity, and gasoline will experience price increases of approximately 10%, but the vast majority of commodities will experience much smaller price increases of approximately 1%. The distribution of the policy effects across sectors of the economy are based on the relative price increases and the mix of commodities consumed in each sector. Based on the estimated price increases and the mix of commodity consumption observed in the 2006 input–output tables,
consumers would bear approximately 70% of the aggregate policy effects; federal, state, and local governments would bear about 12% of the aggregate policy effects; and private fixed investment costs would be approximately 8% higher.