Union of Confused Scientists: 28% increase in energy cost will have "negligible effect" on small business

“California’s global warming law, similar in scope to a measure under consideration by the U.S. Congress, will have a negligible effect on the bottom lines of small businesses, a study showed Wednesday.

The report, prepared for the nonprofit Union of Concerned Scientists, found that small businesses generally do not use much energy, so even a spike in energy costs would have little effect on profits.

Further, most small businesses compete with local rivals, increasing the likelihood that higher costs could be passed on to consumers by all the competitors. …

The study calculates that a worst case scenario would be for energy price to jump 28 percent by 2020. That would still leave small business energy costs relatively low …

The latest study did note that manufacturing — the industry many officials look to for economic growth — was more exposed to energy prices than other industries and more open to competition from outside the state.

Big business might suffer more than small ones from higher energy prices in part because manufacturers tend to be big companies, Sarro said.” “Small Firms To Weather California Climate Law: Study

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