Climate Change Archive
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Policy Basics: Climate-Change Legislation and Low-Income Consumers
Updated February 5, 2013
“Putting a price on carbon” through market-based policies like cap and trade or a carbon tax is the most cost-effective way to reduce greenhouse gas pollution. By raising the price of fossil-fuel energy products — from home energy and gasoline to food and other goods and services … -
Policy Basics: Policies to Reduce Greenhouse Gas Emissions
Updated February 5, 2013
Cap and trade and its close cousin a carbon tax are the approaches that most economists favor for reducing greenhouse gas emissions. These market-based approaches work by creating incentives for businesses and households to conserve energy, improve energy efficiency, and adopt clean-energy … -
Global Spending Cap Would Make it Virtually Impossible to Enact Climate Legislation
June 16, 2011
In the bipartisan deficit-reduction negotiations that Vice President Biden is conducting with congressional leaders and senior lawmakers, Republicans have proposed that negotiators include a global spending cap in the package they craft. And this week, the House Judiciary Committee approved, on a party line vote, a … -
How Low-Income Consumers Would Fare in the Kerry-Lieberman Climate-Change Bill
May 24, 2010
The American Power Act, which Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) released in draft form on May 12, includes important provisions to help ensure that the legislation’s measures limiting greenhouse-gas emissions do not increase hardship by making poor families poorer or pushing more people into poverty. Like the … -
Podcast: Climate Change Legislation and Low-Income Households
May 18, 2010
The Center’s Chief Economist, Chad Stone, discusses how the new Kerry-Lieberman climate change legislation will affect low-income households.
Duration: 3:29
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Protecting the Poor while Fighting Global Warming, By Chad Stone, Chief Economist, and Hannah Shaw
March 29, 2010
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Podcast: Protecting Low-Income Consumers in Climate Change Legislation
November 3, 2009
The nuances of climate change legislation, and how the Senate and House bills will protect low-income families, are discussed by the Center’s Chief Economist, Chad Stone.
Duration: 3:38
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New Climate Bill in Senate Provides Funding for Low-Income Consumers but Amount Falls Short of Need
October 29, 2009
The Clean Energy Jobs and American Power Act (S.1733) introduced by Senators John Kerry (D-MA) and Barbara Boxer (D-CA) represents a notable achievement, as it continues to move Congress forward toward taking needed action to address global climate change. The Kerry-Boxer bill, like the Waxman-Markey bill that the House … -
Testimony: Chad Stone, Chief Economist, on Climate Policy Impact on Low-Income Households
October 21, 2009
Chairman Bingaman, Ranking Member Murkowski, and other members of the Committee, thank you for the opportunity to testify on this important topic. The focus of my testimony will be on how low-income households will be affected by climate change policy and the allocation of greenhouse gas emissions allowances. The essential … -
Podcast: Climate Change Testimony
October 21, 2009
The Center’s Chief Economist, Chad Stone, testifies before the Senate Committee on Energy and Natural Resources on how low-income households will be affected by climate change policy.
Duration: 7:24
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Podcast: Low-Income Consumers and the Kerry-Boxer Climate Bill
October 19, 2009
Recent developments in climate change legislation are discussed by Chief Economist, Chad Stone.
Duration: 3:32
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How Low-Income Consumers Fare in the House Climate Bill
Updated October 7, 2009
On June 26, 2009, the House of Representatives passed the American Clean Energy and Security Act of 2009 (H.R. 2454). The legislation, which would place a cap on emissions of greenhouse gases to combat global warming, includes important provisions to help ensure that the legislation does not increase hardship by making poor families poorer or … -
Video: Robert Greenstein Discusses Consumer Relief Provisions in Cap-and-Trade Bill on E&ETV
September 14, 2009
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Changing Climate Bill To Give More Allowances To Electric Utilities Would Likely Hurt, Not Help, Consumers
August 11, 2009
In a July 6 letter to Majority Leader Harry Reid, the Edison Electric Institute (EEI) called for an even larger allocation of free allowances to the electricity sector than the substantial share it would receive under the House climate bill, as well as a more protracted phase-out of these allowances. In advancing these requests, the EEI … -
Low-Income Climate Consumer Relief: Funds Needed for State Administration
August 11, 2009
The House-passed climate legislation (H.R. 2454), which would place a cap on emissions of greenhouse gases to combat global warming, includes very important consumer relief provisions to help ensure that the legislation does not increase hardship by making poor families poorer or pushing more people into poverty. Under the House bill, 15 … -
Podcast: Improving Consumer Relief in the Climate Change Bill
July 30, 2009
Chief Economist Chad Stone discusses how the Senate can improve consumer relief in climate change legislation by scaling back corporate windfall profits.
Duration: 4:00
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Senate Can Strengthen Climate Legislation By Reducing Corporate Welfare and Boosting True Consumer Relief
July 10, 2009
Executive Summary The House’s June 26 passage of the American Clean Energy and Security Act represents a milestone in climate policy, moving the nation closer to enacting legislation that combats global warming while mitigating the burden of higher energy costs on the most vulnerable households. The Senate can improve on this … -
Podcast: Climate Change Legislation
July 8, 2009
Chief Economist Chad Stone discusses how climate change legislation protects consumers from increased energy costs.
Duration: 4:51
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Adding Funding to the House Climate Bill for Low-Income Home Energy Assistance Would Help Poor Families Facing Particularly Large Increases in Energy Costs
July 8, 2009
On June 26, 2009, the House of Representatives approved the American Clean Energy and Security Act of 2009 (H.R. 2454). This legislation, which would place a cap on emissions of greenhouse gases to combat global warming, includes important provisions to ensure it does not make large numbers of low-income families worse off. These … -
Investing Climate Revenues in Subsidized Housing Energy Efficiency Would Cut Emissions and Lower Federal Costs
July 7, 2009
The federal government spends more than $3 billion per year on utility costs in public housing and privately owned subsidized housing. Investments that increase energy efficiency in subsidized developments can lower those expenditures and generate long-term federal savings that would offset much of the up-front cost. Those … -
New EPA and CBO Estimates Refute Claims That House Climate Bill Would Impose Large Costs on Households and the Economy
June 25, 2009
The costs of fighting greenhouse gas pollution are modest and manageable, according to analyses of climate change legislation coming to the House floor that both the Environmental Protection Agency and the Congressional Budget Office have issued in recent days. These analyses decisively refute opponents’ claims that … -
Holding Down Increases in Utility Bills Is a Flawed Way To Protect Consumers While Fighting Global Warming
Revised June 3, 2009
Policymakers who are sensitive to the impact on consumers of higher energy prices stemming from climate-change policies should be wary of approaches to consumer relief that keep utility bills artificially low. A more straightforward — and effective — way to provide consumer relief is to refund money directly to … -
Waxman-Markey Climate Change Bill Fully Offsets Average Purchasing Power Loss for Low-Income Consumers
May 20, 2009
On May 19, 2009, the House Energy and Commerce Committee began consideration of the American Clean Energy and Security Act of 2009 (H.R. 2454), introduced by Reps. Henry Waxman (D-CA) and Ed Markey (D-MA). The legislation, which would place a cap on emissions of greenhouse gases to combat global … -
Testimony: Robert Greenstein on How Climate Change Legislation Can Fight Global Warming Effectively While Protecting Consumers,
April 23, 2009
Thank you for the opportunity to testify today. The main message of my testimony is that climate change legislation can fight global warming effectively while protecting consumers if it is designed appropriately. Fighting global warming requires policies that significantly restrict greenhouse … -
Fact Sheet: How a “Climate Rebate” Would Work
Revised April 22, 2009
Policies that restrict greenhouse-gas emissions will significantly raise the price of fossil-fuel energy products. That’s necessary to encourage energy efficiency and greater use of clean energy sources, but it will pose challenges for low- and … -
How to Use Existing Tax and Benefit Systems to Offset Consumers’ Higher Energy Costs Under an Emissions Cap
April 20, 2009
This report outlines the Center on Budget and Policy Priorities’ proposal to create a “climate rebate” for low- and middle-income consumers that offsets the impact of higher energy-related prices resulting from climate change policies. It also explains how this rebate could be delivered efficiently through the tax system and existing benefit systems. Introduction … -
Testimony: Chad Stone on Protecting Lower-Income Families in Climate Change Legislation
Revised April 20, 2009
Note: This testimony and the testimony of Robert Greenstein were delivered on the same day and are similar in most respects. Chairman McDermott, Ranking Member Linder, and other members of the Subcommittee. Thank you for the opportunity to testify on this important topic. The main message of my testimony is that it … -
Testimony: Robert Greenstein, Before the House Committee on Energy and Commerce and the Subcommittee on Energy and Environment
Revised April 20, 2009
Note: This testimony and the testimony of Chad Stone were delivered on the same day and are similar in most respects. Thank you for the opportunity to testify today. The main message of my testimony is that climate change legislation can fight global warming effectively while protecting consumers if it is designed … -
Climate Equity Alliance: Principles for Addressing the Needs of Low and Moderate Income Workers, Families and Communities within Global Warming Legislation
April 8, 2009
America and the world face a grave challenge from global warming. Although local communities around the country are responding to this challenge by beginning to build a green economy, the time for federal action is now. Any policy that aims to reduce greenhouse gas emissions or address the consequences of climate change will bring about changes not only in our environment, but also in our … -
Climate Equity Alliance: Endorsing Organizations
April 8, 2009
The Climate Equity Alliance is a broad convening of organizations working to ensure that climate policy effectively addresses the needs of low- and moderate-income families, workers, and communities. The following organizations – from the research, advocacy, faith-based, labor, and civil rights communities – have endorsed the six guiding principles … -
Press Release: New “Climate Equity Alliance” To Push For Strong Climate Legislation That Protects and Provides Opportunity for Low- and Moderate-Income Americans
April 8, 2009
WASHINGTON – More than two dozen organizations – from the research, advocacy, faith-based, labor, and civil rights communities – have formed the Climate Equity Alliance to help ensure that the strong policies needed to reduce greenhouse gas emissions also protect low- and moderate-income households … -
Podcast: Climate Equity Alliance Forms
April 3, 2009
This audio presentation, which includes remarks from the Center's Executive Director Robert Greenstein, introduces the Climate Equity Alliance and presents the principles drawing these groups together, with particular attention to how policymakers should move forward following the draft legislation just put forward by Representatives Henry Waxman (D-CA) and Edward Markey (D-MA).
Duration: 17:17
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Cap and Trade Can Fight Global Warming Effectively While Also Protecting Consumers
March 3, 2009
Some critics of President Obama’s budget have argued that the proposal to place a cap on greenhouse gas emissions to combat global warming represents a tax increase for virtually all Americans. That claim is misleading because it focuses on just one aspect of the Administration’s cap-and-trade proposal. It ignores … -
Podcast: Examining the Administration's 2010 Budget
February 27, 2009
This podcast discusses the President’s budget outline for fiscal year 2010.
Robert Greenstein discusses the priorities in the budget, as well as specific initiatives in major areas such as health care, taxes, and climate change. They also examine the budget’s implications for the federal deficit and debt and fiscal responsibility, and evaluate whether the budget’s numbers are honest or rely on gimmicks.
Duration: 20:54
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Extending "Climate Rebates" to Include Middle-Income Consumers
February 19, 2009
Policies that restrict greenhouse gas emissions will significantly raise the price of fossil-fuel energy products — from home energy and gasoline to food and other goods and services with significant energy inputs. Such policies are necessary to encourage energy efficiency and greater use of clean energy sources. They will, however, cut into consumers’ … -
Why Utilities Are Not Well-Suited To Deliver Relief To Low- And Moderate-Income Consumers In A Climate Bill
February 19, 2009
Comprehensive climate change legislation is expected to include measures to mitigate the effects of higher energy-related prices on low- and moderate-income family budgets. Those higher energy prices play an important role in achieving efficient emissions reductions under a cap-and-trade system (or under a carbon tax), and they are an inevitable result of measures that limit the supply of fossil-fuel energy.… -
Lessons From The Telephones Lifeline Program Add To Concerns About Using Utilities to Deliver Low-Income Climate Rebates
July 18, 2008
Protecting the budgets of low-income consumers is a critical issue in the design of climate change legislation. The Lieberman-Warner Climate Security Act recently debated in the Senate contained a measure that relied primarily on electric and gas utilities to deliver such relief. However, evidence from the only existing federal program that delivers … -
How Low-Income Consumers Fare in the Senate Climate-Change Bill
June 3, 2008
On June 2, the Senate began consideration of S. 3036, the Lieberman-Warner Climate Security Act of 2008. This is landmark legislation that would establish a cap on U.S. greenhouse-gas emissions — a critical step forward in the fight against global warming. It would do so without endangering future economic growth and … -
How CBO Estimates the Cost of Climate-Change Legislation
May 13, 2008
When the Congressional Budget Office prepares cost estimates for climate-change legislation, those estimates reflect what is known as a “25-percent income and payroll tax offset.” As a result of this offset, the net revenue estimated to be generated by an auction of emissions allowances under a cap-and-trade program or … -
Brochure: Climate-Change Policies Can Treat Poor Families Fairly and Be Fiscally Responsible
Revised May 12, 2008
The United States can reduce greenhouse-gas emissions in a way that does not increase poverty or otherwise harm low-income households and is fiscally responsible. As part of any global warming legislation, Congress should take steps to protect low- and moderate-income consumers. Efficient, effective policies to reduce greenhouse-gas … -
Designing Climate-Change Legislation That Shields Low-Income Households from Increased Poverty and Hardship
Revised May 9, 2008
Efficient, effective policies to reduce greenhouse-gas emissions work in part by raising the prices of fossil-fuel energy products to encourage energy efficiency and the substitution of clean energy sources for fossil fuel. This is essential to prevent extensive environmental and economic damage from climate change. However, it … -
The Effects of Climate-Change Policies on the Federal Budget and the Budgets of Low-Income Households
Revised May 9, 2008
Effective measures to reduce greenhouse-gas emissions can be compatible with sound budgeting and the fair treatment of low-income consumers. Designing a policy that meets these objectives requires, however, that lawmakers be mindful not just of the environmental consequences of their actions but of the budgetary and distributional … -
Testimony of Robert Greenstein, Executive Director, Center on Budget and Policy Priorities at the Hearing on the Tax Aspects of a Cap-and-Trade System, Senate Committee on Finance
April 24, 2008
Strong and effective measures are needed to reduce greenhouse gas emissions and prevent costly and potentially catastrophic environmental and economic damage as a result of climate change. The Center on Budget and Policy Priorities’ area of expertise is not in environmental policy per … -
Testimony Of Robert Greenstein, Executive Director, Center On Budget And Policy Priorities Hearing On "Cap, Auction, And Trade: Auctions And Revenue Recycling Under Carbon Cap And Trade" Select Committee On Energy Independence And Global Warming
January 23, 2008
Strong measures are needed to reduce greenhouse gas emissions and prevent costly and potentially catastrophic environmental and economic damages from climate change. The Center on Budget and Policy Priorities’ area of expertise is not in environmental policy per se, but rather in the impacts that climate change policies … -
Testimony of Robert Greenstein, Executive Director, Center on Budget and Policy Priorities at the Hearing on the Fiscal Impacts of Controlling Carbon Emissions, House Budget Committee
November 1, 2007
Effective action to reduce greenhouse gas emissions is necessary to prevent costly and potentially catastrophic environmental and economic damages from climate change. The Center on Budget and Policy Priorities is not making recommendations about how much we need to reduce emissions; that is not our area of expertise and we leave those recommendations to … -
Statement by Robert Greenstein, Executive Director, Center on Budget and Policy Priorities, on the Lieberman-Warner Climate Change Bill
October 18, 2007
We are encouraged to see two leaders on climate change taking this important step to reduce greenhouse gas emissions. The bill from Senators Lieberman and Warner is a significant step forward in climate-change policy. It falls short, however, of meeting the crucial goal of …




