Energy Industry Advantages And Disadvantages

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COSTS AND BENEFITS The primary cost is increased energy costs. For example, gas prices will be raised 15 cents per gallon the first year, and 10 cents each year afterwards. However, some households who minimize their fossil fuel consumption will actually turn a profit from the monthly dividend, which will encourage further reduction in fossil fuel use. Estimates show that about 2/3 of all households would break even or receive more in their dividend checks, which helps to protect the poor and middle class (“Carbon Fee and Dividend” 2015). Critics of this plan have highlighted the burden on farmers, because they rely heavily on fossil fuels to power machinery and produce fertilizers. While this is true, climate change would impose a much greater cost than the carbon fee. A 2008 report by the USDA established that climate change would lead to widespread crop failure, northern migration of weeds, increased disease pressure, a reduction in livestock production, increased drought, increased flooding, and strained resources (USDA 2008). This would lead to millions…show more content…
The biggest winners will be the alternative energy industry, which will benefit from significantly increased investment, profits, and public interest. REMI predicted that consumer industries would benefit because a carbon fee “increases demand from households for consumer staples like healthcare, food and drinks, electronics, media, entertainment, and housing” (REMI 2014). The report predicted net losses for mining, transportation, manufacturing, and fossil fuel industries. However, almost all industries evaluated would experience an increase in employment, with the exceptions being forestry and fishing, company management, utilities, and mining (REMI 2014). Of all fossil fuel industries, coal will suffer the most significant losses, with the REMI report predicting that coal power will be completely eliminated within twenty years of implementation (REMI

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