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A carbon dividend pairs effectively with a carbon tax. You give people (not businesses) an equal proportion of the tax collected. People who consume less than t
by jdlshore 3y ago
A carbon dividend pairs effectively with a carbon tax. You give people (not businesses) an equal proportion of the tax collected. People who consume less than the average end up earning more than they spent.
- wiml 3y agoHow is "carbon dividend plus carbon tax" different from "cap and trade"? C&T seems to have gone very out of fashion, but it also seems to me to be the most equitable approach — I don't follow this closely enough, maybe I'm missing something.
- jdlshore 3y agoIt’s similar in some ways, but very different in practice. I don’t study these things, but my understanding is that cap & trade puts a hard limit on emissions, then allows businesses to trade carbon allowance as a new sort of currency. Carbon tax + dividend doesn’t put a hard limit, and it doesn’t establish a new currency/market. Instead, emissions are taxed at the business level and that revenue is paid out at the individual level. I like the way it plays to the strengths of our existing capitalistic system. It’s easy to ratchet up the taxes without affecting the little guy—even benefitting them. It seems easier to administer too.