Build on EPA Rules with Revenue-neutral Carbon Price

The Environmental Protection Agency has announced new rules to curb carbon emissions, under the Clean Air Act. The program is called the Clean Power Program and aims to reduce emissions from coal-fired power plants by more than 30% within 20 years. It is the single most significant step toward reducing power plant greenhouse gas emissions ever taken by the US government.

Many environmental activists are celebrating; predictably, opponents of climate action are warning of grave economic costs. The real impact is less, and less immediate, than many suspect. If the targeted emissions are reduced by the target percentage, then overall US greenhouse gas emissions from industrial, household and transportation sources, will decline by roughly 10% over 20 years.

Continue reading “Build on EPA Rules with Revenue-neutral Carbon Price”

Carbon Fee and Dividend: to Spur Job Creation, Industrial Boom

Feedividendjustice-640x392

Carbon → Fee → Dividend → Simple

  •    Fee on carbon-emitting fuels, at the source (mine, well, port of entry)
  •    100% of revenues returned, in equal shares, to every household, every month
  •    Non-protectionist border adjustment, to ensure level playing field
  •    Power over energy economy returned to consumers
  •    Major energy-sector investment flows to clean, renewable resources

The conventional wisdom on action to reduce carbon emissions is that it must be expensive, harmful to the economy, and result in less productive power generation. This is a blatant falsehood based on the outmoded idea that combustion is the most favorable way to harvest energy. All systems of carbon taxation or carbon emissions capping operate on the principle that applying economic pressure in a targeted way can inspire markets to change their behavior. This is the very logic of market-based economic systems.

Continue reading “Carbon Fee and Dividend: to Spur Job Creation, Industrial Boom”