Connie Young - 7/2017 - unpublished - Cap and Trade

I agree with the Bee’s editorial in praise of our governor and legislators for continuing cap and trade. ( http://www.fresnobee.com/opinion/editorials/article162494933.html )

However, when it comes to national climate change legislation, I’d recommend that Congress pass carbon fee and dividend legislation such as proposed by Citizens' Climate Lobby. Here’s why: 

A steadily-rising fee on carbon emissions would be more predictable than cap and trade’s fluctuating permit prices. Businesses like predictability. 

Cap and trade is complicated and its pricing is determined behind closed doors. By comparison, carbon fee and dividend would collect predetermined fees from fossil fuel producers and distribute the proceeds equally to U.S. households. Using existing mechanisms for collecting and distributing money would preclude any need for new bureaucracies.

Carbon fee and dividend would enable consumers, rather than regulators, to decide which energy sources they use.

Finally, a border adjustment would level the playing field for U.S. and foreign businesses while encouraging other countries to implement comparable carbon pricing.  

Carbon fee and dividend: predictable, easy to administer, market-based and can be implemented worldwide. What’s not to like?

Connie Young

unpublished, July 2017