Environmental Mandates Will Raise Prices In California | RealClearMarkets

The net effect of the mandate will be less competitive transportation options that lead to inflated consumer costs as rail companies exit the sector. “As small-business rail lines risk going bankrupt and prices rise for consumers, what is likely to happen is a shift to more trucks to meet shipping needs,” says Chris Barnard of the American Conservation Coalition.

“America’s railroad system is nationally integrated, meaning locomotives constantly cross state borders,” Barnard adds. “As a result, even CARB has acknowledged that its rule will force many companies operating in the state to change their entire fleet nationwide, with enormous price tags attached. The costs of bad policy in California will be passed on to consumers nationwide.”