Editor’s note: This commentary is by Beth Zigmund, MD, who is an associate professor of radiology at the University of Vermont Medical Center and a volunteer for the Vermont Chapter of the Citizens Climate Lobby.
In 2020, for the first time in the over 30 years since scientists first warned of the planet-warming effects of fossil fuel emissions, climate change was among the critical topics in the presidential debates. During his campaign, then Democratic nominee Joe Biden focused on the climate crisis, gambling on the power of shifting public opinion and the unmistakable need for action.
Vermont is fortunate to have a congressional delegation of veteran climate champions. The climate advocacy of Sen. Patrick Leahy, Sen. Bernie Sanders, and Rep. Peter Welch is too abundant to detail here. For years, they have been attempting to overcome congressional inertia with legislative solutions to this urgent challenge.
In 2020, the ravages of climate change were on stark display in the form of historic wildfire and hurricane seasons, as well as droughts and flooding, well known to our brave little state. Now, the swell of public demand for action on climate encompasses the nation. According to the Yale Program on Climate Change Communication, 54% of Americans are either “alarmed” or “concerned” about climate change. Only 7% are “dismissive” of the issue. In Vermont, 63% of adults are “worried” and 60% want Congress to act. The surge in public concern is appropriate and long overdue.
A wide array of actions on climate change is necessary, but experts agree carbon pricing is essential to meeting the goals required. One fast-acting policy option is a carbon fee and dividend system: Energy companies would pay a gradually increasing fee on all oil, gas and coal used in the United States based on the greenhouse gas emissions they produce. Putting that price on pollution would steer our country toward cleaner options, slashing our harmful emissions across many areas of our economy at once while stimulating green energy research and economic development.
Rather than simply taxing individuals and expanding governmental reach as in similar proposals, the revenue would be returned to Americans on a regular basis — a “carbon cashback,” if you will. Cash payments put Americans in the driver’s seat because they know best how to spend it: pay bills, buy groceries, save, invest in a more energy efficient car, spend it at a local business, or anything else.
This is especially important for low- and middle-income Americans, who might otherwise struggle with cost increases as we shift to a clean energy economy. When equal dividends are given to everyone, low- and middle-income Americans benefit dramatically. A recent study compiled by a research affiliate of the University of Pennsylvania showed greater than 60% of U.S. households would receive more in dividends (“cash back”) than they would pay in fees, with lower income households faring best due to their lower consumption of fossil fuels. Of the remainder, most would break even or see a minimal increase in costs.
Finally, cash dividends are easy to administer and track, free of political favoritism, unlike tax offsets or other complicated carbon trading options.
The principles of carbon fee and dividend are widely endorsed internationally, including by 27 Nobel Laureate economists, four former chairs of the Federal Reserve, and 15 former chairs of the Council of Economic Advisors. To name a few in Vermont, it has been endorsed by the Vermont Ski Association, Burton, Building Green Inc., Sugarbush Resort, and Uncommon Solar, as well as by 31 prominent academics from several Vermont universities.
Carbon fee legislation currently exists in Congress as the Energy Innovation and Carbon Dividend Act (H.R. 763). With a strongly committed president and millions of Americans eager for solutions, the time is ripe for bold solutions to climate change. Vermont’s leaders in Congress are committed to this issue. They need to hear from their constituents. Please urge Leahy, Sanders, and Welch to support transparent, effective, and progressive carbon pricing in the form of a carbon fee and dividend.
