Carbon Tax Would Wallop PA Economy

Member Group : PA Manufacturers' Assn.

The Pennsylvania Manufacturers’ Association
225 State Street Harrisburg, PA 17101
Contact: David N. Taylor
[email protected]
Jeff Ostermayer, NAM 202.637.3090

A Carbon Tax Would Wallop Pennsylvania’s Economy
New Study Finds Proposed Tax Would Hurt Manufacturing Growth, Jobs and Energy Prices in Pennsylvania

Harrisburg, PA March 5, 2013 – Today, the National Association of Manufacturers (NAM) and the Pennsylvania Manufacturers’ Association released a study conducted by NERA Economic Consulting that shows a carbon tax would have a devastating impact on manufacturing in Pennsylvania. The report, titled Economic Outcomes of a U.S. Carbon Tax, found that levying such a tax would result in higher prices for natural gas, electricity, gasoline and other energy commodities. Manufacturing output in energy-intensive sectors could drop by as much as 15.0 percent and in non-energy-intensive sectors by as much as 7.7 percent.

"As talk has continued in Washington about a carbon tax, the results of this study are very troubling as Pennsylvanians would see their energy bills go up across the board," said David N. Taylor, Executive Director. "Businesses throughout Pennsylvania would be dealt a costly blow. We are facing an unemployment rate of just under 8% in Pennsylvania, and a carbon tax will only cause us more economic harm."

Key findings for Pennsylvania include the following:
• This tax would deal a blow to employment in Pennsylvania with a loss of worker income equivalent to 77,000 to 81,000 jobs in 2013 and 96,000 to 122,000 by 2023.
• The cost of using natural gas would increase by more than 40 percent in 2013, the first year of the carbon tax study, adding to household energy bills and increasing operation costs for many Pennsylvania businesses.
• Gas prices at the pump would jump by more than 20 cents a gallon in 2013.
• Households in Pennsylvania would see a significant increase in their electricity rates, with an average increase of 13 percent in 2013.
• By 2023, the hardest hit economic sectors in Pennsylvania would be coal, which would lose between 48 and 54 percent in economic output, and energy-intensive manufacturing, which would lose 1.9 percent, and non-energy-intensive manufacturing, which would lose between .5 and .9 percent.
"The notion that some policymakers have in Washington that an economy-wide tax of this nature is a good idea is flatly wrong," said NAM President and CEO Jay Timmons. "Our nation’s economy and family budgets can’t take it. As consumers of one-third of our nation’s energy supply, manufacturers and our employees will struggle with higher energy prices. A carbon tax will severely harm our ability to compete with other nations."

The study examines two carbon tax scenarios: one levied at $20 per ton increasing at 4 percent and the other designed to reduce carbon dioxide (CO2) emissions by 80 percent. Both cases would have a negative impact on the economy. To view the Executive Summary of the study, please click here. To read the entire study, click here.

About NAM

The National Association of Manufacturers is the largest manufacturing association in the United States, representing manufacturers in every industrial sector and in all 50 states. Manufacturing has a presence in every single congressional district providing good, high-paying jobs. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit

733 10th St. NW, Suite 700 • Washington, DC 20001 • (202) 637-3000
About The Pennsylvania Manufacturers’ Association

The Pennsylvania Manufacturers’ Association (PMA) was founded in 1909 and is the leading voice for manufacturing in the commonwealth. With more than a century of service to the manufacturing community, PMA continues to fight for our members in the effort to build a more competitive and prosperous Pennsylvania. To learn more visit

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