Pricing Carbon Emissions To Tackle Climate Change Beats Regulations

November 1, 2021
By Nick Sargen

As world leaders convene at the Glasgow Climate Summit, the over-riding issue is what can be done to tackle climate change now that the United States has rejoined the Paris Accord. Negotiators are aiming to reach a deal for the world to become carbon neutral by 2050.  

My answer is the solution is well known: The U.S, should make a carbon tax an integral part of its climate strategy along with incentives to develop alternatives to fossil fuels.

Soon after, three prominent Republicans – James Baker, George Shultz and Henry Paulson – put forth an alternative solution to tax carbon emissions as a “conservative climate solution” based on free-market principles.  The advantages of this approach are it establishes a price for carbon emissions and generates revenues that can be rebated as dividends for the most vulnerable communities.