A state panel recommended that most of the proceeds from a proposed carbon tax in California, set to take effect in 2012, should be given back to consumers. The 16-member Economic and Allocation Advisory Committee, charged with figuring out the most cost-effective way to implement a tax on carbon emissions, threw its support behind a so-called “cap-and-dividend” approach. Such a plan would set a steadily decreasing limit on CO2 releases by major emitters, place a price on carbon dioxide emissions, and then give most of the revenue back to citizens. The panel said that “cap-and-dividend” would cushion the cost to consumers of higher energy prices, create some political support for a carbon tax, and reward consumers who reduced energy use. Annual energy dividend checks for a family of four could reach $1,000. As federal climate legislation increasingly appears to be stalled in Congress, some states, most notably California and a consortium of northeastern states, are moving ahead with programs to cap and place a price on carbon emissions.
California Climate Bill Should Give Cash to Consumers, Panel Says
More From E360
-
Energy
Why U.S. Geothermal May Advance, Despite Political Headwinds
-
Food & Agriculture
In War Zones, a Race to Save Key Seeds Needed to Feed the World
-
Climate
Lightning Strikes the Arctic: What Will It Mean for the Far North?
-
RIVERS
A Win for Farmers and Tribes Brings New Hope to the Klamath
-
Solutions
Deconstructing Buildings: The Quest for New Life for Old Wood
-
NATURAL DEFENSES
How Restored Wetlands Can Protect Europe from Russian Invasion
-
Solutions
Birds vs. Wind Turbines: New Research Aims to Prevent Deaths
-
FORESTS
Cambodian Forest Defenders at Risk for Exposing Illegal Logging
-
OPINION
The ‘Green’ Aviation Fuel That Would Increase Carbon Emissions
-
CONSERVATION
Out of the Wild: How A.I. Is Transforming Conservation Science
-
Energy
China’s Mega Dam Project Poses Big Risks for Asia’s Grand Canyon
-
Solutions
How Natural Solutions Can Help Islands Survive Sea Level Rise