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Policy Research, Analysis & Design for a Sustainable Economy, Environment & Workforce

Climate Policy and Energy-Intensive Manufacturing: Impacts and Options

Impacts and Options

National Commission on Energy Policy (NCEP)/Bipartisan Policy Council, Washington DC

Climate Policy and Engery-Intensive Manufacturing

High Road Strategies, in collaboration with the Millennium Institute, conducted a groundbreaking two-year study to examine the climate change policy responses available to Congress and the Administration to address the competitiveness concerns of U.S. heavy manufacturing industries, labor unions and others. Employing sophisticated system dynamics economic models, the High Road Strategies-Millennium Institute team assessed the impacts of a moderate-priced U.S. green house emissions trading system (i.e., the Lieberman-Warner America’s Climate Security Act of 2007 (S. 2191)) on the competitiveness of five energy-intensive manufacturing industries—iron and steel, aluminum, paper and paperboard, alkalies and chlorine, and petrochemicals—that are among the largest industrial consumers of fossil fuels, and emitters of greenhouse gases, in the American economy. The study, funded by The National Commission on Energy Policy, also explored options to offset the energy price impacts through investments in low-carbon technologies, and cost-mitigating policy measures such as an allowance allocation to offset the added carbon-based costs incurred under a cap-and-trade system.

Key findings include:

The results of the study are summarized in a report released June 2009, entitled Climate Policy and Energy-Intensive Manufacturing: Impacts and Options. The report includes an overview of the project, summarizing its methodology and principal findings, several chapters with in-depth analyses of the iron and steel, aluminum, paper, and chemicals (petrochemicals and alkalies and chlorine) manufacturing industries, and a technical appendix. The latter includes a literature review of related studies, a detailed description of the study’s methodology, and a summary of alternative scenarios and sensitivity cases modeled in addition to the core policy cases.

Climate Policy and Energy-Intensive Manufacturing: Impacts and Options
Full Report (pdf)
Executive Summary (pdf)

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Printed copies of the report and executive summary also are available for only shipping & handling costs. Contact us directly if interested in placing an order.

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