Tuesday, December 16, 2008

Cap and Dividend: a market-based solution to CO2

Cap and Dividend is a simple, market-based way to reduce CO2 emissions without reducing household incomes. It caps fossil fuel supplies, makes polluters pay, and returns the revenue to everyone equally, thus offsetting the cost to consumers.


Think about it as an expansion of the Alaskan system, in which the state government gives about $2000 a year to each citizen from the carbon energy industry. Under Cap & Dividend, carbon licenses would be auctioned to carbon users at whatever price the market sets; the profits would be distributed to all citizens (...as in Alaska...) to offset energy price increases.


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