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How about a revenue-neutral carbon fee and dividend in which households receive the fees that are levied on polluters? https://en.wikipedia.org/wiki/Fee_and_div

• tomjen3 8y ago
  That won't work. Imagine a collection of average households, not much different from one another. Each household could spend 10 thousand dollars improving insulation, and with the cap and div scheme it would be paid back in 5 years. After 5 years you are net ahead, so that seems reasonable, right? Except that with the improvements the money they make back is now less, because the total amount of money that gets paid into the cap-and-div is less, so they have essentially lost money, even though the system is supposed to the revenue neutral. Granted in the real world it would be more complicated because not every household is the same, but the system would still not give us a free lunch.