Climate
Corner
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Regional Economics Modeling, Inc (REMI)
Last
week in Climate Corner we explained why there
is nothing to fear from Carbon Fee and
Dividend in Florida Congressional District 17. To the contrary, the net
impact on Household income is beneficial.
But how do we know that Carbon Fee and Dividend will
really work in a macro sense - overall economic growth, jobs, health? Analysis
by the World Resources Institute, International
Monetary Fund and others shows a
consensus that a steadily increasing price on carbon will yield economic and
health benefits, as well as the intended reductions in Greenhouse gas
emissions - so long as the money is returned to households. This theoretical knowledge has been proven to
work in practice. British
Columbia imposed a carbon tax that rose
from 10 Canadian dollars per ton of CO2 in 2010 to 30 dollars in
2012, using the money to reduce personal and corporate income taxes. It worked- emissions have been reduced and
their economy has done better than the rest of the nation.
To further explore what will happen in the United States
when Carbon Fee and Dividend is implemented, Citizen's
Climate Lobby contracted with Regional Economics Modeling, Inc (REMI). On June 9, 2014, the REMI study was
released and examined the impact of a steadily-rising fee on carbon-based fuels
with revenue from that fee returned to households in equal shares. With the fee
starting at $10 per ton of carbon dioxide and rising $10 per ton each year, the
major findings were:
·
In 20 years, CO2 emissions
would be reduced 50 percent below 1990 levels.
·
Because of the economic
stimulus of recycling carbon fee revenue back to households, in 20 years, 2.8
million jobs would be added to the American economy.
·
Improved air quality would
result in 230,000 premature deaths avoided over 20 years.
In our geographic area, we can expect a regional net gain in GRP of $15.1 billion by 2025 (3rd highest among the nine regions), a net increase in jobs by 400,000 (2nd among all regions), and a sizeable increase in real income per capita (4th among all regions). Improved air quality also results in the prevention of around 1,000 premature deaths annually by 2025. Overall, Fee and Dividend is a clear winner in our region. (Click here for South Atlantic regional results)
There is no economic argument against Fee and Dividend. It creates jobs, grows the economy, saves lives, and makes Americans richer. Combined with the reduction emissions that a price on carbon will bring, Fee and Dividend is a national policy that serves the interests of all Americans and especially us in the Southwest region.
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