The California Air Resources Board policy team released its draft greenhouse gas cap-and-trade proposal last week.  According to the agency’s draft, a cost of $60 per ton of Co2 between 2012 and 2020 would total $143 billion over the first 9 years of the program.  The estimates for costs per ton of reduction range widely depending on the design of the program.  Some estimates reach as high as $200 per ton!  It is unlikely that industry and high-wage employers will be able to compete in global markets with these overwhelming California-only costs.  A program this costly should come with a valid economic analysis to show that California can grow its economy and add jobs while subject to these costs. So far we have not seen that proof.

Read VP Dorothy Rothrock’s official media statement on the overall draft proposal.