Point Carbon reports Obama carbon caps will cause $0.12 per gallon increase in gasoline by 2012

In Washington, Point Carbon said that its analysis of the federal carbon cap proposed by President Obama reflected a $13.70 price per ton of carbon allowances in 2012. European allowances are currently priced at $13.35.

Under the carbon proposal, 80 percent of the nation would have its carbon emissions capped at 2005 levels, and would buy and sell carbon credits to meet individual company emissions. The 5.8 billion ton carbon cap would be reduced by 2 percent each year, causing the price of carbon to increase $16.50 per allowance by 2020.

Point Carbon said that the carbon price would cause gasoline prices to increase by $0.12 per gallon, or 6 percent, and would increase to $0.20 per gallon by 2020.

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