The Estimated Costs to Households From the Cap-and-Trade Provisions of H.R. 2454

The Estimated Costs to Households From the Cap-and-Trade Provisions of H.R. 2454

Global climate change is one of the nation’s most significant long-term policy challenges: Reducing emissions of greenhouse gases (GHGs) would moderate the damage associated with climate change and, especially, the risk of significant damage, but doing so would also impose costs on the economy. In the case of carbon dioxide (CO2)—which accounts for 85 percent of U.S. GHG emissions— higher costs would stem from the fact that most economic activity is based on fossil fuels, which contain carbon and, when burned, release it in the form of that gas.