An estimation of the potential impact on Georgia's economy of higher energy costs predicted under the Cap and Trade provisions of H.R.2454.

Abstract

Recent “Cap and Trade” legislation, designed to reduce global warming emissions, continues to raise questions about potential impacts on the agricultural sector. Many studies are limited because they consider only impacts on agricultural production costs without examining the total agribusiness sector, though in general most agree that higher energy prices will result. The nature of Georgia’s agribusiness economy suggests increases in agricultural production costs will have impacts that differ from the national picture. With higher expenses for energy-dependent inputs, such legislation will likely impose a higher burden on Georgia’s farmers than at the national level.