Economists' Statement on Carbon Dividends
The Economists’ Statement on Carbon Dividends is a joint statement signed by over 3,500 U.S. economists promoting a carbon dividends framework for U.S. climate policy. The statement was organized by the Climate Leadership Council and originally published on January 16, 2019 in The Wall Street Journal with signatures from 45 Nobel Prize winning economists, former chairs of the Federal Reserve, former chairs of the CEA, and former secretaries of the Treasury Department. Since its original publication, the statement has been signed by over 3,500 U.S. economists and has been recognized as the largest statement in the history of the economics profession. Summary The statement recognizes an immediate need for climate action and offers five policy recommendations: A carbon tax is the most cost-effective method of reducing carbon emissions at the necessary scale and speed. The carbon tax should be revenue neutral and designed to increase every year until emissions reductions goals are met. A sufficiently robust carbon tax can replace carbon regulations that are less efficient. A border carbon adjustment system will prevent carbon leakage and enhance the competitiveness of American firms that are more energy-efficient that their foreign competitors. The carbon tax's revenue should be distributed to U.S. citizens