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Economic Policy Institute Analysis of Climate Change
Accelerating Globalization?
The Economic Effects of Climate Change Policies on U.S. Workers
 

In 1997, shortly before the Kyoto conference on Climate Change, the Economic Policy Institute (EPI) issued an analysis of climate change polices with a particular eye toward their effect on workers. Here's what EPI had to say:

"We find that these policies could have significant costs for the economy, especially in the next ten to fifteen years, and that their distributional effects would be even larger than their effects on the overall level of output."

"GHG policies will have a strikingly consistent, negative impact on real wages."

"In the short run, 1.5 to 2.6 million fewer jobs would be created, and in the long run there will be substantial shifts in employment and population between industries and regions of the country."

"Worker retraining policies, especially in the trade adjustment area, have established a poor track record, which may raise questions about the wisdom of incorporating such measures into a GHG policy or treaty package."

"GHG policies will sharply increase energy prices in the U.S., especially for coal and natural gas."

"Multinational firms in developed countries will have additional incentives to shift investment to developing countries, if those countries do not face restrictions on their greenhouse gas emissions."

Accelerating Globalization? The Economic Effects of Climate Change Policies on U.S. Workers

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