Abstract

http://ssrn.com/abstract=1605455
 
 

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Industry Profits, Stock Prices and Household Burdens: A Distributional Analysis of the Kerry-Boxer Cap-and-Trade Bill


Andrew Chamberlain


University of California, San Diego (UCSD) - Department of Economics

Feliz M. Ventura


Chamberlain Economics, L.L.C.

March 1, 2010


Abstract:     
Using an input-output model of the U.S. economy, we estimate the distributional impact of the “Clean Energy Jobs and American Power Act” (S. 1733) on short-run profits and stock prices of a representative sample of electricity, natural gas, and petroleum refining firms, and the long-run impact on U.S. households. We find the bill significantly increases profits for electricity and natural gas distributors, raising stock prices by up to 34 percent in some scenarios. By contrast, profits for petroleum refiners would fall sharply with large and mid-sized refiners losing up to 82 percent of stock value. For households, we estimate the bill would impose a gross burden of $113.8 billion per year or $947 per household, ranging from 4.4 percent of income for low-income households to 1.0 percent for upper-income households. These costs would fall disproportionately on families under age 25 and over 75, those in Midwestern states, and single parents with dependent children.

Number of Pages in PDF File: 60

Keywords: Distributional analysis, cap-and-trade, environmental policy, policy analysis

JEL Classification: H23, K20

working papers series


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Date posted: May 14, 2010  

Suggested Citation

Chamberlain, Andrew and Ventura, Feliz M., Industry Profits, Stock Prices and Household Burdens: A Distributional Analysis of the Kerry-Boxer Cap-and-Trade Bill (March 1, 2010). Available at SSRN: http://ssrn.com/abstract=1605455 or http://dx.doi.org/10.2139/ssrn.1605455

Contact Information

Andrew Chamberlain (Contact Author)
University of California, San Diego (UCSD) - Department of Economics ( email )
9500 Gilman Drive
La Jolla, CA 92093-0508
United States
HOME PAGE: http://econ.ucsd.edu/~adchamberlain/
Feliz M. Ventura
Chamberlain Economics, L.L.C. ( email )
1029 Belmont Avenue E.
Suite 201
Seattle, WA 98102
United States
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