This January 2008 policy brief by John Bailey concludes that universal dividends are a critically important tool to create the political will and public acceptance for a carbon cap. Universal dividends have the potential to hold harmless a large segment of consumers while we move to a low-carbon economy. Moreover, the universal dividend honors the principle that the sky belongs to all of us equally. Private investment in clean and efficient technologies will be driven by a carbon cap that leads to steady reductions over time of GHG emissions and carbon-based fuels.
Common to many proposals addressing climate change is a cap on carbon emissions or carbon content of fuels. A cap will generate a market value for carbon.
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