The Idea | Pay Your Air Share | Market Friendly Climate Change

Step 1. Calculate

Have scientists and economists calculate the social cost of greenhouse gas emissions

Set the rate at the lower of:

1) The social cost of carbon, as calculated by esteemed scientists and economists. All qualified experts should be invited to submit their data to a national scientific panel on climate change, openly debating and sharing their views and discoveries, in order to arrive at a consensus, average social cost of carbon emissions.

2) The market price of carbon offsetting, or services to mitigate one ton of carbon emissions through carbon sinks. Using the market price to set the tax rate allows environmental groups and green-minded individuals the ability to "bargain" for a higher tax rate by purchasing offsets, creating higher demand, and thus raising the price.

Step 2. Charge

Charge the per-ton cost to all greenhouse gas emitters

Targets should include all major emitters of greenhouse gases, including energy producers, motorists, and all other fossil fuel emitters

Fossil fuel prices will then reflect their true social cost, which creates a seamless market-based incentive for the development of alternative energy.

Step 3. Adapt

Spend the money to adapt to climate change and return the rest of the money to the people

Because most scientists admit that even the most draconian emissions cuts would still fail to completely prevent negative effects from climate change, it is imperative that America be prepared for the inevitable, and use the revenues to adapt to climate change.

The work of the Cato Institute and others have helped us recognize that while anthropogenic climate change may be a reality, that does not mean that the man has the power to simply reverse century-long climate trends at a whim, or should decree economically-harmful emissions cuts that may not even do anything.

However, neither is it an excuse to do nothing about a very real problem.

While most of the money should be returned to the people in the form of an across-the-board income tax cut to ensure a healthy economy, a portion of the carbon tax revenues should support private sector and community-based adaptation projects in low-income localities to scientifically-demonstrated effects of climate change.

Frequently Asked Questions: ****************************************
I think global warming is a bunch of b*******. Don't you?: No. While it's undeniable that the science on climate change is still extremely uncertain, the most comprehensive study to date has found general agreement that man-made climate change is happening.

But as you can read in this article, even if you're right, our proposal is still a good idea for the following five reasons:
1. Our carbon tax is set at the consensus rate of scientists, so if you're right about the science, nothing will be charged to anyone.

2. The carbon tax is an effort to address an environmental issue with a market-based, efficient and equitable policy. If successfully implemented, it will set positive precedents for respect of free-market ideas regarding other environmental issues as well.
3. Undoubtedly, most of the scientists that you think are doubting "global warming" are really only questioning anthropogenic global warming. All that means is that we can't really do much to stop it. But because our carbon tax uses money to adapt to climate change, it's simply the most cost-effective way of dealing with that reality.
4. We also propose the carbon tax should be accompanied by an across-the-board tax cut, so it won't harm the economy.
5. The carbon tax creates a market incentive for alternative fuels, so that we can reduce our dangerous and expensive dependence on foreign oil. Even if you don't believe in global warming, you can believe in that.
I hate taxes. Why should I support a carbon tax?: First of all, we support an income tax cut to accompany the carbon tax, in order to soften its impact on Americans.
Second, the carbon tax is required in order to make polluters pay for the true social cost of their CO2 emissions - simply assessing compensation for the best estimate of the damage to their fellow citizens' property. Unlike every other tax, this isn't some arbitrary levy to fund unnecessary bureaucracy. It's about making people pay for the harm they cause everyone else - the Golden Rule in its purest form.
I think global warming is a serious crisis! Is your carbon tax enough?: Our carbon tax is intended to combat global warming in the most cost-effective way possible. It does not spend taxpayer money to fund pet projects or to achieve arbitrary emissions limits that may or may not be technologically or economically feasible. It simply lets market prices reflect their social cost.
But there's a separate advantage. Our carbon tax is market-based, and set at the price of carbon offsets. Because of this innovative feature, Global Warming Warriors who are unsatisfied with the carbon tax's alleged leniency can put their money where mouths are, and go buy carbon offsets. Not only does that fight global warming, but it increases market demand for offsets, raising the market price (and thus the tax rate). Call it do-it-yourself climate change regulation.