The cap and trade delusion (2)

It would appear that the chances of the Waxman-Markey cap and trade bill passing the Senate this year are going down big-time. Three days ago, the Senate Environment Public Works Committee held a hearing at which the EPA administrator said that "unilateral U.S. action to reduce greenhouse gas emissions would have no effect on climate."

EPA Administrator Jackson confirmed an EPA analysis showing that unilateral U.S. action to reduce greenhouse gas emissions would have no effect on climate. Moreover, when presented with an EPA chart depicting that outcome, Energy Secretary Steven Chu said he disagreed with EPA's analysis.

"I believe the central parts of the [EPA] chart are that U.S. action alone will not impact world CO2 levels," Administrator Jackson said.

Sen. James Inhofe (R-Okla.) presented the chart to both Jackson and Secretary Chu, which shows that meaningful emissions reductions cannot occur without aggressive action by China, India, and other developing countries. "I am encouraged that Administrator Jackson agrees that unilateral action by the U.S. will be all cost for no climate gain," Sen. Inhofe said. "With China and India recently issuing statements of defiant opposition to mandatory emissions controls, acting alone through the job-killing Waxman-Markey bill would impose severe economic burdens on American consumers, businesses, and families, all without any impact on climate."

This is excellent news for the economy, since this bill would have had very destructive effects (e.g., higher energy costs, more regulatory burdens, more bureaucracy).