Source: James K. Boyce & Matthew E. Riddle, Political Economy Research Institute, August 2009
Fromm the summary:
This new study by James Boyce and Matthew Riddle (in partnership with the Economics for Equity and the Environment Network) shows how the increased cost of fossil fuels created by a carbon cap policy could be distributed across the population, based on the carbon footprints of households in different income brackets in each state.
With a carbon price of $25 per ton, Boyce & Riddle estimate that the annual cost to the median family ranges from $239 per person in Oregon to $349 in Indiana. Under cap-and-dividend, each person would receive dividend payments of $386 per year. The median family would end up with a net gain ranging from $37 per person in Indiana to $147 in Oregon, in addition to the benefits of curbing global warming,
At the same time a cap-and-dividend policy would send a clear price signal that burning fossil fuels has a social cost, giving businesses and consumers a strong incentive to invest in energy efficiency and clean energy.
See also:
- Press Release
- Boyce's testimony on cap-and-dividend before the U.S. Senate Finance Committee
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