There has been much concern among Americans, and rightly so, that a carbon fee and dividend plan will hurt the most vulnerable in our population as well as the middle class by increasing energy costs.
Since such a plan has been proposed to decrease greenhouse gas emissions, it has generated many studies evaluating both its environmental and economic effects. Now, yet another independent study has evaluated its effects.
Earlier this month, economists from Columbia University released a study on the Energy Innovation and Carbon Dividend Act, HR 763. The study confirmed that “average low- and middle-income households receive more in dividends than they pay in increased economy-wide prices.”
This now marks the fourth study that has shown that such a plan actually benefits the low-income and much of the middle-income people in America. Previous studies by the U.S. Treasury Department, Regional Economic Modeling Inc., and Resources for the Future have all shown similar results.
As the effects of climate change have become more apparent, public opinion polls now show that most Americans want action on climate change, and the majority actually favor some type of carbon tax. Yet, we need a solution that will not hurt our economy and the most vulnerable in our country.
HR 763, the Energy Innovation and Carbon Dividend Bill, seems to fulfill those needs. In addition to putting more money back into most Americans’ pocketbooks, economic studies show that it could add millions of new American jobs by spurring American ingenuity.
Environmental studies show that it can decrease greenhouse gas emissions by about 90% by 2050 without costing our government one red cent.
Realizing that proposing solutions to climate change can still cause a great deal of controversy, there is much to like about HR 763. Such a plan is supported by the vast majority of economists in our country and around the world. If this does appeal to you, please consider contacting your congressmen and asking them to support the bill. If not, let them know of any better idea that is being proposed.