The Deluge

by Stephen Markley

There is only one way to begin: with a rapid decarbonization of the economy. One might call this the low-hanging fruit since many of these policies and technologies have, frustratingly, been available since the turn of the century. This begins with the “shock collar,” popularized by the late Ms. Morris. By implementing a carbon price tied to emissions reductions and rebating the money to taxpayers with a so-called climate dividend we can begin to quickly reduce emissions and incentivize innovation. The price to burn a ton of carbon will begin at $100 and rise steadily at 2 percent unless emissions targets go unmet, in which case it could rise by as much as 7 percent. The revenue will be returned to taxpayers in quarterly checks, weighted so that households in the bottom 75 percent of the income distribution are receiving the majority of the benefit. A border adjustment tariff will deter leakage or offshoring while raising the cost of products originating in countries without a sufficient greenhouse abatement policy. The goal will be to reach carbon neutrality by 2055. Given the size of the US economy, this will indeed begin to quickly “shock” carbon out of the supply chain.

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