The Nebraska Economy: The Potential Consequences of Proposed
Climate Change Regulation This report summarizes key economic
issues surrounding climate change legislation and regulation and
considers potential implications for Nebraska, a state with a
large agricultural sector and a focused manufacturing industry.
The key findings are listed below. manufacturing sectors that
are expected to be hardest hit by increases in energy prices.
Nebraska also has a large agricultural sector that could be just
lightly affected if it is exempted from regulation and would
benefit from the opportunity to sell carbon offsets. However, it
is uncertain as to whether these conditions would prevail. -
While economic theory supports the imposition of taxes or other
costs on polluters, effective policy requires the choice of an
appropriate tax. Choice of an appropriate tax can be difficult
in the case of greenhouse gas emissions because there is
uncertainty about the economic costs of these emissions. There
are two sources of uncer