OVERVIEW OF COMPETITIVENESS ISSUES IN THE MIDWEST

The report analyzes how carbon pricing may affect the US Midwest, a region characterized by high carbon intensity due to coal dependency and a large manufacturing base. While carbon pricing could increase short-term costs for energy-intensive industries, the report argues it presents a long-term opportunity for the region to lead in low-carbon production and 'green collar' jobs. It highlights the Midwest's significant mitigation potential and the role of the Midwestern Greenhouse Gas Accord in driving this transition.

• The US Midwest is more carbon intensive than the national average due to a high concentration of manufacturing and a strong dependency on coal, which meets approximately 70% of the region's electricity needs.
• The Midwest's greenhouse gas emissions are significant, accounting for 27% of US emissions in 2005 and approximately 5% of total world emissions; if it were a country, it would be the 5th largest emitter globally.
• Carbon pricing is likely to be introduced in the Midwest via the Midwestern Greenhouse Gas Accord (MGGA), which planned a regional cap-and-trade system to commence on January 1st, 2012, or through potential Federal legislation.
• In the short term, carbon pricing may disproportionately increase costs for Midwestern industries compared to national competitors because of the region's fuel mix and industrial concentration.
• In the long term, the region can leverage its manufacturing base and research universities to become a leader in low-carbon production. The Midwest contains 27% of the US's known mitigation potential for 2020 costing less than $50/tCO2.
• Specific low-carbon technology markets—wind turbine components, hybrid powertrains, and advanced batteries—could generate up to 104,640 new jobs and $812 million in additional tax revenues by 2015 for a subset of Midwest states.
• A lack of regional diversification in the manufacturing sector, characterized by vertical integration, means that carbon price impacts on one part of the value chain may be magnified in the final product.
• The analysis was limited by significant data constraints regarding greenhouse gas inventories, leading to a recommendation for increased monitoring, reporting and verification (MRV) to better identify at-risk sectors.

APA

Climate Strategies (2010). OVERVIEW OF COMPETITIVENESS ISSUES IN THE MIDWEST. https://climatestrategies.org/wp-content/uploads/2014/11/240115-midwest-issues-and-options-final1.pdf

Chicago

Climate Strategies. OVERVIEW OF COMPETITIVENESS ISSUES IN THE MIDWEST. 2010. https://climatestrategies.org/wp-content/uploads/2014/11/240115-midwest-issues-and-options-final1.pdf.

Wikipedia

{{cite report |author=Climate Strategies |title=OVERVIEW OF COMPETITIVENESS ISSUES IN THE MIDWEST |date=January 2010 |url=https://climatestrategies.org/wp-content/uploads/2014/11/240115-midwest-issues-and-options-final1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatestrategies2010overview, author = {{Climate Strategies}}, title = {{OVERVIEW OF COMPETITIVENESS ISSUES IN THE MIDWEST}}, institution = {Climate Strategies}, year = {2010}, month = jan, url = {https://climatestrategies.org/wp-content/uploads/2014/11/240115-midwest-issues-and-options-final1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }