A couple of weeks ago I appeared before the California State Assembly and told legislators that the cost of the State’s cap-and-trade legislation, which comes into full effect in August this year, will be $450 billion over a decade.
This was a deliberate underestimate. I bent over backward to see whether the Californian proposal could ever make any economic sense. The results, when I ran them through my simple model, confirmed what many have long suspected but few have calculated until now: that attempting to mitigate our sins of emission is one of the most cost-ineffective wastes of taxpayers’ money ever devised.
I had multiplied the $182-billion annual cost of California’s scheme and associated mitigation measures not by 10 but by 2.5 – a quarter of the true gross cost over a decade. The reason for effectively dividing the stated costs of California’s mitigation policies…
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