Policy group assails Duke Energy´s carbon dioxide tax plan

April 8 -- A nonpartisan public policy group has come out strongly against Duke Energy Corp.´s call for a tax on carbon dioxide emissions that would reduce fossil fuel consumption and greenhouse gases.

Duke Energy Chairman Paul Anderson called on the federal government to adopt the tax, which would cut carbon emissions and start addressing the global warming issue. Anderson conceded that would mean higher rates for energy customers and steeper gas prices, but argued that allowing greenhouse gases to go unchecked could create even worse problems.

But the Competitive Enterprise Institute slammed Anderson, calling the plan a blatant attempt to dump the problem on consumers.

"Rather that trying to hide the costs of carbon suppression behind an allegedly market-based trading mechanism, he´s come out with the more candid option -- a massive increase in the tax burden on American consumers," CEI senior fellow Marlo Lewis said.

The power industry has argued against mandating greenhouse gas emission reductions, claiming it could cut emissions cheaply and easily, he said. The industry has contended that legislating or regulating carbon dioxide emission reductions would drastically increase energy prices.

"Duke Energy´s proposal makes clear what the debate is really about," said Myron Ebell, director of global warming and international environmental policy at the CEI. "It´s the American people versus special interests that want to raise taxes."