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CARBON TAX COULD COST AMERICANS HUNDREDS OF THOUSANDS OF JOBS, REPORT SHOWS

 CARBON TAX COULD COST AMERICANS HUNDREDS OF THOUSANDS OF JOBS,
 REPORT SHOWS
 WASHINGTON, May 12 /PRNewswire/ -- At least 600,000 workers in America's most basic industries will lose their jobs if a carbon tax or other policies are enacted to reduce carbon dioxide emissions, according to a new study released today by CONSAD Research Corporation. A carbon tax could result from pending federal legislation.
 Designed to stabilize carbon dioxide emissions at 1990 levels by the year 2000, a carbon tax would produce annual losses in the gross national product of 1.7 percent through the year 2020 and put the U.S. economy into a deep-freeze.
 The CONSAD report projects that by the year 2000, 600,000 or more American workers will lose their jobs as a result of the adoption of a carbon tax or similar global climate change policies. Job losses could rise beyond 1.6 million by the year 2005.
 "We know a carbon tax will have substantial effects on jobs and employment, especially in our country's industrial heartland and in the major mining and oil producing states," concluded Wilbur A. Steger, Ph.D., president of CONSAD.
 According to Steger's projections, even in the short run (three to five years), American job losses could surpass 360,000. This job loss would be accompanied with adverse economic conditions, including high inflation, resembling the energy shocks of the 1970s.
 The states most heavily affected are Texas, California, Pennsylvania, Ohio and Illinois. Texas tops the list with 74,000 jobs lost by the year 2000 due to a carbon tax. Following Texas is California with 46,300 jobs, Pennsylvania with 41,800 jobs, Ohio with 36,600 jobs and Illinois with 32,800 jobs, totaling 231,500 jobs lost in those five states alone.
 Thousands of businesses are likely to confront the choice of closing plants or going into bankruptcy if proposals for a so-called carbon tax are adopted. The most affected industries include mining and primary metals, chemicals and allied products, and oil and gas.
 Steger also predicts that if a carbon tax is adopted, the jobs of nearly 5 million American workers will be put "at risk." In addition to an increase in American unemployment, this means that substantial numbers of other workers will experience tangible adverse changes in their terms of employment: reductions in wages and hours worked, increased frequency and duration of layoffs and diminished prospects for job growth.
 The report comes as legislation is pending in Congress and leaders of industrialized nations are calling for an agreement to stabilize worldwide carbon dioxide emissions. Early in June, leaders from more than 150 nations will be at the United Nations-sponsored Earth Summit in Rio de Janeiro, Brazil, to sign a climate treaty setting goals for allowable carbon dioxide emissions.
 A number of recent economic studies have unanimously concluded that imposition of a carbon tax for stabilizing or reducing carbon dioxide emissions would reduce the U.S. standard of living. To evaluate the likely employment consequences of any intermediate and long-term business adjustments, the results of these studies have been reviewed and synthesized by CONSAD.
 CONSAD Research Corporation is an independent, Pittsburgh-based, private-sector think tank founded in 1963.
 -0- 5/12/92
 /CONTACT: Peter Soh for CONSAD, 202-828-8889/ CO: CONSAD Research Corporation ST: District of Columbia IN: SU: ECO LEG


TW-MH -- DC032 -- 9200 05/12/92 14:09 EDT
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Date:May 12, 1992
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