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Despite the uncertainty involved with future climate predictions, the federal government is now poised to pass a cap-and-trade program that will attempt to reduce human-emitted greenhouse gases. Because a cap-and-trade program is essentially an energy tax, the program would have an enormous effect on Americans by increasing the costs of almost everything that is needed or desired in our daily lives. Unfortunately, the majority of Americans do not have a clue about what a cap-and-trade program actually is and thus are unable to voice their possible concerns.
Study Finds that Driving has a Positive Effect on the EconomyEfforts to “Get People out of their Cars” Put Economy at Risk
For Immediate Release
Contact: John A. Charles, Jr., 503/242-0900
Randall Pozdena, 503/368-4604
October 28, 2009 – Cascade Policy Institute has released an empirical study examining the relationship between vehicle-miles-travelled (VMT) and Gross Domestic Product (GDP). The study finds that “VMT is a large and statistically significant driver of GDP” and cautions that artificial attempts to limit driving through taxation or regulation will cause a significant decrease in economic output.
Specifically, if the government reduces VMT through mandates, GDP will decline by almost the same percentage as the drop in VMT, over a two-year period. Over a longer period, GDP will drop by about 46% of the rate of VMT decline. (more…)