Cap and trade legislation will cost $175 annually for the average household, or just .2% of after-tax income, says the Congressional Budget Office.
On Friday, the CBO released a report assessing cap and trade costs to households. It analysed the cost of the program in 2020. At that point the legislation would be eight years old, so the economy should have adjusted to changes presented by the legislation.
The CBO assumed a $28 price for a carbon credit. In 2020, 17% of the emissions would be sold and 83% given away.
The costs and benefits for households vary in the program. The lowest income households actually see a $40 benefit from the program. The highest income households have a $245 cost.
That strikes us as an incredibly small price to pay to cut back on greenhouse gas emissions, which have repeatedly and resoundingly been linked to increased global temperatures.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.