Some Think Cap and Trade Not Good for Texas

Texas could lose jobs and billions in economic activity in twenty years if a Cap & Trade energy bill passed by the House of Representatives last summer becomes law. That’s according to new research released by a non-profit free-market research group. Texas Senator John Cornyn says the benefits of the measure won’t be enough to make up for that loss. Pat Hernandez has the story.

New research released by the Texas Public Policy Foundation finds the enactment of current federal proposals to cap carbon emissions would be detrimental to the Texas economy.

Doctor Margo Thorning is an internationally recognized expert on tax, environmental and competitive issues. She says Texas, with its ties to energy and manufacturing, would be impacted by federal mandates to reduce greenhouse gases.

“The impact of the higher energy prices that are caused by the Waxman-Markey Bill  is to slow Texas job growth to as much as 200-thousand fewer jobs by the year 2030, compared to the baseline forecast. Now, we did model the cap and trade provisions in the Waxman-Markey bill, but even with the green job pickup, we overall lose jobs in the U.S. and in Texas.”

Texas Republican Senator John Cornyn calls cap and trade a jobs killer.

“I’m very much interested on the small businesses here in Texas, on learning what it is that helps them create and retain new jobs, because we know Texas should be the model for the rest of the nation. Our unemployment numbers are roughly two points lower than the national average. We shouldn’t be trying to be more like Washington, Washington ought to be more like Texas, and this bill takes us clearly in the wrong direction.”

The measure is now pending in the U.S. Senate. The Environmental Protection Agency wants to regulate carbon emissions, but Texas has filed legal challenges against EPA’s authority to do so.