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September 8, 2010

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What Will Cap-and-Trade Cost People in Your Congressional District?

By E. Calvin Beisner, Ph.D.

The Heritage Foundation released a report on June 25 that shows the costs of H.R. 2998, the so-called “American Clean Energy and Security Act,” on a district-by-district basis. What will it cost people in your district? The report gives aggregate figures, but you can calculate the cost per capita easily enough.

For my district (Florida 25), Wikipedia shows population (in 2000) of about 640,000. So I can take the aggregate figures in the Heritage report and divide them by that to figure the per capita cost. Gross state product loss in 2012 of $341.45 million is about $534 per person; the average state product loss in 2012-2035 of $679.81 is about $1,062 per person. Personal income loss for the district of $532.64 in 2012 is about $832 per person, and average annual personal income loss for the district of $308.49 in 2012-2035 is about $482 per person. The average cost per household (assuming average household of four) is simply four times each of those per capita amounts: gross state product loss per household in 2012, $2,136; in 2012-2035, $4,248 per year; personal income loss per household in 2012, $3,328; in 2012-2035, $1,928 per year.

So, you can figure the per capita cost for your own district by looking up its population on Wikipedia and then dividing the aggregate figures in the Heritage report by that number.

Multiply each of those results by 4 to get average cost per household. Then, add to the personal income loss the roughly $1,200 per month in added direct energy costs (electricity, natural gas, gasoline, propane) to the average American household. For households in Florida District 25, that comes to an average net loss of $5,528 in 2012 and of $3,128 per year in 2012-2035. And that, of course, is before adding the increased costs of all goods and services because of the higher cost of the energy used to produce them.

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