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How Policies to Reduce Greenhouse Gas Emissions Could Affect Employment

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Congressional Budget Office: How Policies to Reduce Greenhouse Gas Emissions Could Affect Employment, May 5, 2010 Economic and Budget Issue Brief

  • “The Congressional Budget Office (CBO) has analyzed the research on the effects that policies to reduce greenhouse gases would have on employment and concluded that total employment during the next few decades would be slightly lower than would be the case in the absence of such policies. In particular, job losses in the industries that shrink would lower employment more than job gains in other industries would increase employment, thereby raising the overall unemployment rate. Eventually, however, most workers who lost jobs would find new ones. In the absence of policies to reduce emissions of greenhouse gases, changes to the climate also might affect employment; however, this brief does not address such changes because that effect would probably arise after the next few decades, and it has not been studied as carefully by researchers.”
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