How do we finance a clean energy transition while putting money into people’s pockets? Charge a fee (or tariff if you like) on carbon and send all money raised directly back to people in the form of a monthly dividend check. Here’s how it works:
- Place a steadily rising fee on fossil fuels
Carbon fees are proposed fees collected for the cost of burning fossil fuels; the dividends are the fees collected (minus administrative costs) and returned to Americans to spend as they see fit.
- 100% of fees (minus administrative costs) are returned to households each month as a dividend
100% of the net fees are held in a Carbon Fees Trust fund and returned directly to households as a monthly dividend.
About two-thirds of Americans will receive more in Dividends than they will pay in higher prices. This feature will inject billions into the economy, protect family budgets, free households to make independent choices about their energy usage, spur innovation, and build aggregate demand for low-carbon products at the consumer level.