Report Title: The Conservative Case for Carbon Dividends (United States, Republican Party)
A little bit about the author:
By CL Council (2017) by James A. Baker III, Martin Feldstein, Ted Halstead, N. Gregory Mankiw, Henry M. Paulson Jr., George P. Shultz, Thomas Stephenson and Rob Walton.
They are part of The Climate Leadership Council is an international research and advocacy organization in favor of equitable climate solutions. The group includes senior officials from previous Republican administrations.
Key Reading Points:
- A “carbon dividends plan” would allow the government to address climate change while remaining true to its principles of free markets and limited government.
- The government could implement incremental carbon tax and then redistribute the revenues in the form of a dividend to American citizens
- Exporters to countries with no carbon tax would have their carbon tax payments refunded, while the US would impose a fee on imports from such countries, encouraging them to adopt a similar system.
- This would allow the government to drastically cut the climate regulations and the bureaucracy that administers them.
- Carbon dividend has a lot of many economic benefits, example, as a means to provide reliable source of revenue for low-income Americans, increase transaction and promotes investment which boosting the economy.
Summary on some key reading points:
A means to address the increasing threat of climate change without abandoning conservative principles of free market and limited government involvements.
Thus, making ‘carbon dividends plan’ is an effective way to reduce carbon emissions while promoting economic growth and reducing regulations.
The proposed plan has 4 pillars:
- Carbon Tax – imposes a tax on fossil fuels which most economists consider as “the most efficient and effective way to reduce carbon emissions.” Hence, as carbon consumption declines, the government gradually increases the tax.
- Carbon Dividends – Provided the basis that government redistributes the carbon tax revenue equally among all citizens. This ensure broad popular support for the carbon dividends plan and secure its longevity.
- Border adjustments – US companies exporting goods to countries with carbon tax will have their carbon tax payments refunded. And the US would impose a special fee on imports from carbon tax-free countries, encouraging them to adopt a similar system. The fees would again be distributed among the American people.
- Regulatory relaxation – A high enough carbon tax will result in emissions cuts that exceed current targets, which will render moot many CO2 regulations, including the Clean Power Plan. This will enable the US government to cut its bureaucracy.
These plan will resonate well with low-income Americans which will be compensated by the pollution caused by large corporations. Recent polls suggest that 67% of Americans support a carbon dividends plan.
Climate change is an important political issue especially for younger voters and by addressing this issues, the Republican will be able to strengthen the party’s support base.
Rating & Should you read the Report: (10/10)
Awesome climate change report by The Climate Leadership Council.