Citizens’ Climate Education: Carbon Fee and Dividend

Citizens’ Climate Education: Carbon Fee and Dividend



Citizens’ Climate Education: Carbon Fee and Dividend


A market-based approach for reducing carbon emissions to help reduce climate change

The Problem

The world needs to reduce its carbon emissions substantially and quickly to avoid disastrous climate change. While renewable energies are becoming more and more economically competitive, there are still strong economic incentives driving the extraction and burning of fossil fuels. An important approach to reducing emissions is to include the future costs to the planet in the current cost of fossil fuels.

The Solution

Carbon-fee-and-dividend is a revenue-neutral approach that stimulates the economy and creates jobs by returning collected fees to households as a monthly dividend. Studies show that, after 20 years, it could reduce carbon emissions in the United States to 50% of 1990 levels while adding 2.8 million jobs. The Citizens’ Climate Lobby proposes to start the fee at $15/ton of carbon and increase by $10 per year. This would, for example, increase the price of gasoline by about 15 cents per gallon the first year and 10 cents each year afterward.

Stage of Development


Organization to Receive Funds

The funds would go to Citizens’ Climate Lobby, a nonprofit that advocates for carbon-fee-and-dividend at the national level in the United States, and supports local chapters around the world.

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