We do not believe the cap-and-trade program has to significantly increase prices or lead to job losses. But President Obama will have to allocate the carbon dioxide (CO2) allowances free to the utilities, as was done in the very successful EPA Acid Rain Program. To get the real reductions President Obama is calling for, the utilites should direct the estimated $700 billion in revenues projected by the administration, into investments in nuclear power. At a cost of roughly $5 billion each, you would get 140 nuclear power plants that would back out hugh quantities of CO2, nitrogen oxides and sulfur dioxide, among other gaseous emissions. That would give President Obama the bang for the buck he is looking for . And these plants can operate for up to 100 years. It would also create hundreds of thousands of permanent, high paying jobs.
* from Clemson University Economics professors Bryan Buckley and Sergey Mityakov.
[see also Frank Maisano]