Staf Report, Central Valley Business Times

A new analysis of the possible economic impact of complying with California's anti-greenhouse gas law - AB 32, the Global Warming Solution Act - says costs to businesses should be "relatively small and definitely manageable."

The report is being released as international negotiations begin in Copenhagen, Denmark, to limit global warming emissions around the world.

The report is authored by the Brattle Group, described as an international economic consulting group, and sponsored by the Union of Concerned Scientists.

It says most small businesses will not be directly impacted, for example by having to pay fees or cut emissions. It does expect operating costs for small business will increase because of higher energy costs.

But, says the report, those energy cost increases are expected to be manageable and in some cases might prompt businesses to increase energy efficiency perhaps lowering costs or even be "profitable in their own right."

Businesses are also predicted to try to pass along to their customers any increased costs caused by compliance with the new law.

"Overall, our analysis indicates that the likely effects of AB 32 will be minor for small businesses and will be easily absorbed ito the existing range of cost variation that they already face," the report says.

The Union of Concerned Scientists describes itself as a "science-based nonprofit working for a healthy environment and a safer world."