Pricing Carbon
Image courtesy of energyinnovationact.org
Why Price Carbon?
In a coconut shell - it’s effective.
Many studies and actual examples have demonstrated the effectiveness of this market-based approach in encouraging the necessary shifts in mass behavior towards lower carbon footprint solutions.
The general concept:
Place a steadily increasing fee on fossil fuels as far upstream as possible, e.g., at the well or mine, at the port of entry, and at the refinery.
Return the revenue to households to offset the expected rising costs of fossil-fuel intensive products.
Implement a border adjustment to protect industries from goods that are produced using cheap fossil fuels abroad.
Source: energyinnovationact.org
This mechanism is expected to create the necessary market signals that will encourage consumers, businesses, and industries to seek lower-carbon footprint products and solutions.
The household dividend (think of a regular cashback rebate check) will help offset the increased costs associated with the carbon fee.
Of course, households will be naturally encouraged to find lower-carbon footprint options to put extra dollars into their pockets.
Image by Damir Spanic via unsplash
Over time, our industries will deliver solutions that will appeal to the market, e.g., electric cars and more efficient appliances. Importantly, the shift away from increasingly more expensive fossil fuels will accelerate investment and innovations in renewable energy and transportation. The net impact is a market movement towards cleaner solutions and a reduction in the combustion of fossil fuels, the key source of global warming greenhouse gases.
50% Reduction of Emissions by 2030 - How?
Support for carbon fee and dividend is growing. It represents a path towards a dramatic reduction in global-warming emissions and a just transition. Learn more about how carbon pricing can dramatically reduce global warming emissions here.
Carbon Pricing Facts
Climate change requires urgent, effective action. Carbon pricing is a strategy that will complement other policies to effect effective emissions reductions.
Carbon pricing policy works in the real world. There are several examples from across the globe demonstrating the efficacy of carbon pricing.
Carbon pricing is popular. It is endorsed by many scientists, economists, chambers of commerce, and prominent leaders.
International organizations view carbon pricing as essential to reducing global emissions.
Learn more here.
Support for Carbon Pricing
A price on carbon pollution is recognized as a powerful tool for reducing emissions. Support for it is broad - thousands of economists, including Nobel Prize winners, former Federal Reserve Chairs, prominent faith organizations, the U.S. Chamber of Commerce and Business Roundtable, and over a hundred governments.
The Intergovernmental Panel on Climate Change has stated “Explicit carbon pricing remains a necessary condition of ambitious climate policies.”
Support for carbon pricing is growing. Learn more here.
