Carbon Dividends

Goal: Cut emissions efficiently by pricing carbon and return the revenue directly to households.

How it works

• Apply an economy-wide fee per ton of CO₂ emissions at the source.
• Return all or most revenue as equal per-capita dividends.
• Apply a border adjustment so imports from countries without a carbon price pay the same fee, and exports get credit -- keeping the domestic industry competitive and preventing companies from moving abroad to avoid the rules.

Why it matters

Pricing pollution encourages clean innovation while dividends can leave a majority of households financially better off.

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