Center on Budget and Policy Priorities

Climate Change

New Climate Bill in Senate Provides Low-Income Consumer Relief, But Amount Falls Short of Need

“[The Clean Energy Jobs and American Power Act notes] “moving to a low-carbon economy must protect … low-income families that are particularly affected by volatility in energy prices.” [T]he Senate bill stipulates that a portion of emissions allowances should be used for that purpose. These are commendable steps.

“Unfortunately, the Senate bill provides less funding for low-income protection than … is needed. That means that fewer low-income households could be adequately protected from the hit to their budgets … and more such households would end up worse off. As the Senate moves forward, one of its priorities should be to ensure that low-income households receive the protection they need.” Read more

Related:

Basics

Policies that restrict greenhouse-gas emissions will significantly raise the price of fossil-fuel energy products. That is necessary to encourage energy efficiency and greater use of clean energy sources, but it will pose serious challenges for low- and moderate-income households. Fortunately, well-designed climate policies can reduce greenhouse gas emissions in a way that does not increase poverty or otherwise harm low- or moderate-income households and is fiscally responsible.

Featured Experts

Robert Greenstein

Reports | Bio
Chad Stone

Reports | Bio

The Center analyzes the potential effects of climate change policies on low- and moderate-income households and the federal budget. It also designs measures to ensure that the increased energy prices resulting from climate change legislation do not drive more households into poverty or make poor households poorer.