sandorski "No, the Kyoto Agreement does not "cripple" the US."
It's a long report but worth reading, a little dated but still applicable.
October 6, 1997
THE ROAD TO KYOTO:
WHAT'S AT STAKE FOR THE UNITED STATES
Despite a combination of low inflation, increased productivity, and relatively low unemployment, the U.S. economy is holding at a stable but historically low growth rate of 2 percent. However, even this modest economic growth could not be maintained under the UNFCCC. New emissions control standards would raise electricity prices by from 40 percent to 50 percent, the price of gasoline by 70 cents per gallon, and the cost of primary metals from 4 percent to 10 percent, in addition to causing massive layoffs.36 The economic consequences of moving forward on the proposed post-2000 global warming treaty would be devastating for Americans. In fact, a study performed by the Argonne National Laboratory for the U.S. Department of Energy37 in February 1997 predicted that the protocol now being discussed would cause:
20 to 30 percent of the basic chemical industry to move to developing countries within 15 or 20 years;
All primary aluminum smelters to close by 2010;
A 30 percent decline in the number of steel producers at a cost of 100,000 jobs;
Domestic paper production to be displaced by imports;
A 20 percent reduction in the output of petroleum refiners; and
The closing of between 23 percent and 35 percent of the cement industry, which is significant because many cement plants are major employers in small communities.
The Clinton Administration suppressed this study for several months, and it continues to be ignored. The Clinton Administration is trying to debunk the use of economic modeling to capture the magnitude of the treaty's economic impacts. Recently, the Administration's Interagency Analytical Team released a draft report entitled "Economic Effects of Global Climate Change Policies." The study was supposed to determine the economic impact of the Kyoto Protocol, but the team failed to reach any conclusions. Janet Yellen, chairman of the President's Council of Economic Advisers, testified before Congress that "the effort to develop a model or a set of models that can give us a definitive answer as to the economic impacts of a given climate change policy is futile."38 Amazingly, even as the Administration is dismissing the use of economic models because their output is a function of the assumptions put into them, it holds up its own global warming models?which function precisely the same way, with output dependent on assumptions?as gospel truth, not subject to question or debate.
The Treasury Department, however, recently raised concerns about the economic impact of the Administration's plan to achieve mandatory reductions in greenhouse gas emissions by establishing emissions budgets for the UNFCCC parties and allowing them to buy and sell emissions rights among themselves. It is also concerned about the amount the United States would have to pay for emitting carbon dioxide and about the potential financial costs of purchasing permits.39 Regardless of how the Administration chooses to implement the emissions targets, it will be a no-win proposition for the U.S. economy.