Study: California global warming law could cause businesses to flee
May 19, 2010
A new study by the state’s Legislative Analyst’s office suggests a law requiring power plants, factories, and other businesses to cut greenhouse gas emissions could cause energy prices to rise and prompt businesses to either halt expansion or leave. [Los Angeles Times]
The landmark global warming law, being introduced in phases across California, could put the state at a competitive disadvantage against other states, the study by the nonpartisan office warns.
Business may well leave the state, causing serious “economic leakage” — aluminum, chemical, or steel producers might be particularly vulnerable because they rely heavily on energy use and trade.
Meanwhile, the California Jobs Initiative said Tuesday that the new controls could cost the state as many as 1.5 million jobs. The organization is pushing for a proposition on the November ballot that would delay further implementation until there is a decline in the state’s 12.6 percent unemployment rate.
Supporters, however, claim that the increase in environmentally-friendly jobs will more than offset projected losses.