A new report models the effects of a carbon tax in the U.S. at the point of extraction, beginning in 2016 at a rate of $10 per metric ton of carbon dioxide and escalating at $10 per year until 2035. All proceeds from the carbon tax would enter into a “fee-and-dividend” (F&D) system that would refund money to all American households on a monthly basis, based on the number of people in the household. The report forecasts that by 2025, there would be: 2.1 million more jobs under the F&D carbon tax than in the baseline; 33% reduction in carbon dioxide emissions from baseline conditions; 13,000 premature deaths avoided because of improved air quality. The report was prepared for the Citizen’s Climate Lobby by consultants Regional Economic Models (REMI) and Synapse Energy Economics.
Models and research about carbon taxes may assume higher prominence as the U.S. business community becomes more and more open about discussing the possibility.
In an OpEd in the New York Times on June 21, Former U.S. Secretary of the Treasury, Hank Paulsen, a Republican, states that climate change is the challenge of our times and “The solution can be a fundamentally conservative one that will empower the marketplace to find the most efficient response. We can do this by putting a price on emissions of carbon dioxide — a carbon tax…. Putting a price on emissions will create incentives to develop new, cleaner energy technologies.“ Paulsen, along with former New York Mayor Michael Bloomberg and billionaire Tom Steyer, founded a business-oriented research initiative called Risky Business. Their high profile report is scheduled to be released on June 24, and will expand on the themes of Paulesen`s OpEd: the urgency of action and the risks of delay in fighting climate change.
The Economic, Climate, Fiscal, Power, and Demographic Impact of a National Fee-and-Dividend Carbon Tax is at http://citizensclimatelobby.org/wp-content/uploads/2014/06/REMI-carbon-tax-report-62141.pdf
“The Coming Climate Crash“ in New York Times OpEd (June 21) is at http://www.nytimes.com/2014/06/22/opinion/sunday/lessons-for-climate-change-in-the-2008-recession.html?ref=opinion
Risky Business website is at http://riskybusiness.org/