The REMI Study is Not Perfect

The REMI Study is Not Perfect Laser Talk

As with all models, assumptions and simplifications are necessary. Ultimately, this gives us a very good idea of the direction the economy will take if we pass F&D. However, you shouldn’t put too much weight on any one number, especially the further out in time we go. For example, it would be a mistake to believe that the economy would be exactly $1.375 trillion dollars larger as a result of our policy after 20 years, but it would not be a mistake to believe that the economy will be noticeably bigger because of our policy after 20 years.

The study also only resolves to the 9 regions of the United States. This is like looking at a blurry photo, where all the states of a region look like just one blob. It’s nearly impossible to say how Alaska’s economy fares, being lumped in with the much larger economy of California.

It is also important to note that the policy REMI studied has some simplifications relative to CCL’s actual proposal, which were necessary to model it, so there are some slight differences between Carbon Fee and Dividend and the policy modeled by REMI.