Table 26.  Macroeconomic Impacts in Three Carbon Reduction Cases, Average Annual Values, 2008-2012
(Billion 1992 Dollars)

Analysis Case

Loss in
Potential GDP

Macroeconomic Adjustment Cost

Loss in
Actual GDP

Purchases of International Permits

Total Cost
to the Economy

1990-3%

         

 Personal Income Tax Rebate

58 225 283 0 283
 Social Security Tax Rebate 58 70 128 0 128
1990+9%          
 Personal Income Tax Rebate 32 137 169 23 192
 Social Security Tax Rebate 32 59 91 23 114
1990+24%          
 Personal Income Tax Rebate 12 76 88 21 109
 Social Security Tax Rebate 12 44 56 21 77
Note: Loss in potential GDP plus the macroeconomic adjustment costs equals the loss in actual GDP. The actual GDP loss plus purchases of international permits equals the total cost to the economy.
Source: Simulations of the Data Resources, Inc. (DRI) Macroeconomic Model of the U.S. Economy.