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The Conservative Case for Carbon Dividends
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The Conservative Case for Carbon Dividends

James A. Baker III, Martin Feldstein, Ted Halstead, N. Gregory Mankiw, Henry M. Paulson Jr., George P. Shultz, Thomas Stephenson and Rob Walton
CL Council, 2017
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Editorial Rating

10

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  • Hot Topic

Recommendation

A revenue-neutral carbon tax would be an effective and politically feasible way to tackle climate change, according to a group of senior Republicans, including former treasury secretary Henry Paulson and former secretaries of state James Baker and George Shultz. The group, which has formed the Climate Leadership Council, proposes that the Grand Old Party can address climate change without abandoning long-held conservative convictions or hurting the economy. While always politically neutral, getAbstract recommends the Council’s succinct policy proposal to business leaders, policy makers and US voters of any political affiliation.

Summary

The Republican Party needs to address the growing threat of climate change – and it can do so without abandoning conservative principles of free markets and limited government. A “carbon dividends plan” is an effective way to reduce carbon emissions while promoting economic growth and reducing regulations. The proposed plan has four pillars:

  1. A carbon tax – The government imposes a tax on fossil fuels, which most economists consider “the most efficient and effective way to reduce carbon emissions.” As carbon consumption declines, the government gradually...

About the Authors

The Climate Leadership Council is an international research and advocacy organization in favor of equitable climate solutions. The group includes senior officials from previous Republican administrations.

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