Financial impacts of 'cap and trade'Wednesday, August 4, 2010
MIT News   (Browse all news)
Analysis shows that, contrary to some claims, proposed legislation to limit carbon emissions would not disadvantage those with lower incomes.
So-called “cap and trade” legislation has often been portrayed as a regressive policy — one that would hit poor people the hardest. A new MIT study concluded that this is not the case.
The U.S. House of Representatives passed a cap-and-trade bill last year, and different versions of that bill had been working their way through the Senate until being yanked from consideration last month.
The study, co-authored by researchers at the MIT Joint Program on the Science and Policy of Global Change and at Tufts University, found that under all three versions of the bill submitted so far, the costs would fall hardest on wealthier households, and that lower-income households would see no change or a net benefit. (more...)
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