Geoscience Reference
In-Depth Information
carbon prices and thereby reduces coal production and employment will
face strong opposition.
6
This example would be repeated in many sectors. Companies en-
gaged in coal mining and in coal-fi red generation of electricity would
show declines in profi ts. There would be similar but quantitatively
smaller impacts in industries dependent on other fossil fuels.
Table 15 provides a calculation by a modeling team of the effect of a
will be heavily affected and experience more than a 10 percent rise in
costs: electric utilities, cement manufacturing, and petrochemicals. The
Table 15.
Impact of carbon price by industry. This table shows those indus-
tries most and least affected by carbon pricing. For each, the table shows
the increase in production cost of a $25 per ton CO
2
price. Percentages
refl ect full input-output impacts (i.e., include indirect as well as direct costs).
Increase in production
costs (%)
Industry
Most affected:
Electric utilities
20.75
Cement manufacturing
12.50
Petrochemicals
10.50
Aluminum
6.50
Iron and steel mills
5.75
Lime and gypsum manufacturing
5.25
Fertilizer manufacturing
4.50
Paper mills
4.00
Paperboard mills
4.00
Least affected:
Computer and electrical equipment
0.75
Other transportation equipment
0.75
Retail and wholesale trade
0.50
Information services
0.50
Business services
0.50
Finance and insurance
0.25
Real estate and rental
0.25
