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Brookings: Cap and Trade Would Reduce GDP by 2.5 Percent

5:47 PM, Jun 9, 2009 • By JOHN MCCORMACK
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The Washington Times's Amanda DeBard reports:

The Brookings Institution on Monday said cap-and-trade legislation to reduce carbon dioxide emissions would lower the nation's gross domestic product in 2050 by 2.5 percent, compared with levels it would reach if the legislation is not implemented.

A report issued by the left-leaning research organization said that if Congress passes something similar to President Obama's or the House's proposed plan, the economy would take the biggest hit around 2025. At that time, production at refineries and the use of coal and crude oil would decrease by 30 percent to 40 percent compared with what those levels could be in 2025.

About 35 percent of crude-oil-related jobs and 40 percent of coal-related jobs would be lost in 2025, according to the analysis. It assumes that the majority of workers would find new jobs, but the net job loss would be 0.5 percent over the first 10 years that the legislation is in effect.