Showing posts with label Allowance Distribution. Show all posts
Showing posts with label Allowance Distribution. Show all posts

Friday, May 15, 2009

Waxman-Markey Gives Nearly 5 Times More to Polluters than Clean Energy

By Teryn Norris & Jesse Jenkins

The landmark Waxman-Markey 2009 American Clean Energy and Security Act was introduced in the House this afternoon (May 15, download PDF here), and the Breakthrough Institute has performed a preliminary analysis of how it would invest over $1 trillion in cap and trade revenue between 2012-2025. Our key findings for this period include (all numbers are approximate -- download spreadsheet here):



(click image to magnify)


  • Polluting industries: 57.3% of allowances would be freely distributed to polluting industries, including 36.7% for the electricity sector, 12.3% for energy-intensive industries, 6.5% for local natural gas distribution companies, and 1.8% for oil refiners

  • Direct consumer protection: 16.5% of allowances would be used for direct consumer protection, including 15% for low and moderate-income families and 1.5% to benefit users of home heating oil and propane

  • Energy efficiency and clean energy technology: 12.2% of allowances would be used to fund energy efficiency and clean energy technology development and deployment

  • Adaptation and technology transfer: 4.7% of allowances would be used for domestic and global climate adaptation and technology transfer

  • Workforce development: 0.6% of allowances would be used to fund worker assistance and job training

  • Deficit reduction and other: 8.6% of allowances would be used to fund deficit reduction and other public purposes
How much money would these allocations translate into? That depends on the average price for each pollution allowance -- the EPA's initial price estimate was approximately $13-17 per allowance, so we will assume an average price of $15 per allowance. The allocation would look like this (click images to magnify):

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