Cap and Trade

[Alluvial]

Its seems as though the cost is hard to pin down. MIT did a study in 2007 on cap-and-trade. Note that their scenario is different from Waxman-Markey somewhat.

Here is a link to the MIT study (big pdf). One scientist who worked on that study has said that his estimate is $800 per year, per household.

Originally Posted by John Reilly

The present value cost per average current household through 2050, as corrected, is about $800. Again, this estimate includes the direct effects of higher energy prices, the cost of measures to reduce energy use, the higher price of goods that are produced using energy, and impacts on wages and returns on capital. The cost per household will of course vary from our hypothetical average family depending on the household’s circumstances, though the burden on lower income households can be offset through the use of auction revenues.

From here.