Economists agree that putting a price on carbon is an essential first step to reducing greenhouse gas emissions and slowing climate change. However, he further asserts – without evidence – that giving the tax back to the people is “a prescription for failure.”
The Energy Innovation and Carbon Dividends Act of 2019, which already has 52 cosponsors, is modeled on the policy Gale opposes: carbon fee and dividend. The bill would levy a steadily rising tax on the producers of fossil fuels (oil, coal and natural gas) to incentivize both consumers and investors to transition to innovative, renewable sources of energy.