The United States has an advantage over China in producing goods and services at lower rates of carbon emissions, a GOP-backed group said in a new report Wednesday aimed at winning over Republicans skeptical of carbon taxes.
Right now, there are no policies in place to reward U.S. companies for producing less carbon than competitors. But the report, published by the Climate Leadership Council, finds that imposing a carbon price with a border adjustment, or import tax on carbon-intensive goods, would change that and force competitors to lower their emissions if they want a piece of the U.S. market.
“This study shows how America can act to create a competitive advantage for U.S. manufacturers and encourage other countries to do their part to reduce emissions,” said former GOP Secretary of State George Shultz, a co-author of the Climate Leadership Council carbon tax and dividend plan.
“It’s the type of policy we need to unite both the left and the right behind a meaningful U.S. climate strategy,” Shultz told the Washington Examiner.
The council released a separate report Wednesday showing the lowest-earning 80% of American households, on average, come out financially ahead under the carbon tax and dividends plan, meaning they would receive more from the rebate than they’d pay in higher energy costs.
But no Republican lawmakers have endorsed the plan, wary of being perceived as raising taxes.