Adopting carbon restrictions of the magnitude mandated by the Lieberman–Warner and Waxman–Markey cap-and-trade bills or the Boxer–Sanders carbon-tax bill would harm the U.S. and global economies. By 2100, the global economy would lose more than $100 trillion. Analysis suggests that countries with stronger economies can overcome the challenges posed by warming. Indeed, faster growth would insulate the economy from the negative impacts of global warming.
How would adopting a global-warming policy affect world income?
Adopting carbon restrictions of the magnitude found in the Lieberman–Warner cap-and-trade bill[1] would actually reduce worldwide income, even after accounting for the economic benefits of moderated warming. The costs would exceed the benefits by more than $100 trillion over the remainder of the 21st century. The perverse impact of climate policy would be even worse if the major developed countries join the U.S. in implementing an equivalent policy to restrict carbon emissions. Further, the net negative impact would grow exponentially, causing those working in the last two decades of this century to suffer annual income losses that would be hundreds of times greater than those suffered in the early years of the climate policy.