Date: Mon, 25 Sep 1995 11:43:14 -0400 (EDT) From: Competitive Enterprise Institute To: Recipients of the CEI List Subject: CEI List: CFC Mistakes For Immediate Release: Contact: Greg Smith (202) 331-1010 TESTIMONY REVEALS THE CFC PHASEOUT COULD BE A $100 BILLION MISTAKE WASHINGTON, September 20, 1995 -- "Now that the environmental threat is proving to be overstated, consumers are starting to ask questions about how much this phaseout is going to cost them," testified Ben Lieberman, Environmental Research Associate with the Competitive Enterprise Institute. The testimony was given before the House Subcommittee on Energy and Environment of the Committee on Science. The phaseout of chlorofluorocarbons (CFCs) is potentially "the single most expensive environmental measure taken to date," according to a study released by CEI and will cost Americans an estimated $44.5 to $99.4 billion over the next decade according to Lieberman's groundbreaking report; The High Cost of Cool: The Economic Impact of the CFC Phaseout in the United States. In enacting the phaseout "little consideration was given to the costs of eliminating such a widely used class of compounds over a relatively short period of time," said Lieberman. "To the limited extent the EPA has addressed the costs, they have not been honest with the American people. Their extremely low cost estimates have no basis in reality, and cannot stand up to scrutiny," he added. The largest portion of these costs will come from recharging, retrofitting and prematurely replacing vehicle air conditioning systems to use non-CFC refrigerants. "A car air conditioner costs an average of $100 more to repair, and that figure may increase significantly over the next few years," says Lieberman. In the short term the new non-CFC equipment will be less reliable. "In effect, a multi-billion dollar field test of experimental equipment is being conducted at consumer expense," says Lieberman. "The frequency of breakdowns, and the cost of repairs can be expected to increase for many applications," he warns. Increased energy consumption can be expected due to the decreased energy efficiency of the new equipment relative to comparable CFC-using equipment. The impact on domestic and commercial refrigeration could add billions more to the costs of the phaseout. During the policy debate, the costs were underemphasized to the point that they never became an important factor. The impact on consumers was scarcely considered. "CFCs have an effect on the life of nearly every American. This is one environmental issue where big government and big industry are now on the same side. Both are lined up against the consumer," Lieberman concludes. CEI is a non-profit, non-partisan public interest group committed to advancing the principles of free enterprise and limited government. For more information, call Greg Smith at (202) 331-1010. _______ ________ __________ / | | | |_______ | | | | \ _______ |_______ __________ COMPETITIVE ENTERPRISE INSTITUTE 1001 Connecticut Ave. NW #1250 Washington, DC 20036 202-331-1010, fax 202-331-0640 Permission to reprint must be obtained from the publishing journal listed above. Permission to copy granted as long as these lines are left intact. To subscribe to the cei list, send a message to CEI@digex.com. "The Virtual Hand: CEI's free-market guide to the information superhighway" is available for $5. CEI's monthly newsletter, "CEI UpDate," is free to contributors of $25.