The Economic Damage From Cap &Trade

Paul Krugman and other supporters of the so-called "cap and trade" (more accurately called "cap and tax") scheme have cited a study from the Congressional Budget Office that argues that the scheme would impose only small costs to the economy ("merely" $175 per household and year). But even assuming the CBO got all their numbers and methodology correct, the study is in fact associated with so many explicit caveats so as to make it useless, as is noted in this Wall Street Journal editorial. As the article demonstrates, there are good reasons to believe that "cap and trade" will cost the average household a lot more than $175 per year.