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Toyin Oshaniwa

Aug 18, 2017
06:21

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Hi Citizens'Climate

The proposal on Carbon Fee and Dividend Policy, is it a financial innovation of raising fund for Adaptation Projects ? or is it a way of contributing to Adaptation Fund for a state or country?

All the best

Toyin


Ward Graham

Aug 19, 2017
08:28

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Proposal
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Hi Toyin,

The idea is to add a cost to the carbon and return that to every household equally as a direct deposit of cash every quarter. As an example 1 household consumes 1000 gallons of fuel and pays $1000 as the fee and another household uses 200 gallons and pays $200. Then each household at the end of the quarter would get a deposit of $510. As you can see the dividend is returned equally and this is for a reason. the idea is that the households that consume less fuel is most likely to have a lower income and the dividend would offset the increase/impact to their budget while the larger consumer would get punished, still receive the dividend however that offset would be lower.  The monies would provide a valuable stimulus to the lower income households.  One hope is that households would use that money in part to perhaps invest in energy efficient devices, cars etc. to try to lower their overhead. this would spur innovation and competition along with efficiencies within industry and manufacturing etc.  every year the fee would increase by some set amount.  Thus a "fee and dividend"

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