The Deluge

by Stephen Markley

The “shock collar” is, at its core, a carbon price with 100 percent of the money rebated to taxpayers in the form of a climate dividend. Starting at $50 a ton, it will have the effect of not only making emissions more expensive but will give every American a quarterly check that will invest them in the process of decarbonization. The “justice” element of this plan should not be overlooked. As research has shown, putting money in people’s pockets will allow a strapped populace financial breathing room while also stimulating the economy. The innovative element of the shock collar is that the price is tied directly to emissions. The price to burn a ton of carbon will rise steadily at 3 percent per year plus inflation unless emissions do not decrease, in which case the price jumps by 7 percent the next year. If emissions decrease but miss the target, the tax will increase 5 percent. This addresses the concern that a tax might not necessarily lower emissions. With this policy we can quickly ramp up emissions reductions to meet the 10–15 percent per year target we must hit in order to avert catastrophe.