http://www.triplepundit.com/2008/01/the-sky-trust-a-cap-and-dividend-system-that-pays-citizens/ Business, Better. Since 2005 Fri, 10 Feb 2012 07:33:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.triplepundit.com/2008/01/the-sky-trust-a-cap-and-dividend-system-that-pays-citizens/comment-page-1/#comment-12501 John Farrell Mon, 28 Jan 2008 18:06:15 +0000 http://www.triplepundit.com/wordpress/2008/01/the-sky-trust-a-cap-and-dividend-system-that-pays-citizens/#comment-12501 My colleague John Bailey just wrote a paper on the "cap-and-dividend" strategy, which you can find at www.newrules.org. To answer your question about household participation: The goal is that you regulate carbon as far upstream as possible, so that carbon allowances are sold to fossil fuel users at the point at which the carbon-containing substance enters the economy (coal mine, refinery/port, etc). The allowances are sold at auction, which drives up the price of carbon. But households would receive that carbon payment as a per-capita dividend check. Thus, carbon costs are internalized to the price of transportation fuel/heating fuel, etc... and households have additional funds to compensate. The best part is that low-energy households (read: low income) will come out ahead whereas heavy energy users (read: high income) will pay more. The biggest challenge will be addressing "embedded carbon," such as the carbon used to manufacture an iPod in China. My colleague John Bailey just wrote a paper on the “cap-and-dividend” strategy, which you can find at http://www.newrules.org.
To answer your question about household participation:
The goal is that you regulate carbon as far upstream as possible, so that carbon allowances are sold to fossil fuel users at the point at which the carbon-containing substance enters the economy (coal mine, refinery/port, etc).
The allowances are sold at auction, which drives up the price of carbon. But households would receive that carbon payment as a per-capita dividend check. Thus, carbon costs are internalized to the price of transportation fuel/heating fuel, etc… and households have additional funds to compensate. The best part is that low-energy households (read: low income) will come out ahead whereas heavy energy users (read: high income) will pay more.
The biggest challenge will be addressing “embedded carbon,” such as the carbon used to manufacture an iPod in China.

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