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In page Carbon fee and dividend:

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A climate income has several notable advantages over other emission reduction mechanisms:

  • Social justice and acceptability. While there is broad scientific consensus that a carbon tax is the most powerful way to reduce emissions, such a tax necessarily increases prices and the cost of living. By handing out the revenue of this tax as a universal climate income, the price rise is largely compensated. It has been calculated that in total, low and middle incomes would go up under a system of climate income.[citation needed]
  • Market based and cross-sector. Unlike complex regulatory approaches, a fossil fuel fee allows market forces to reduce emissions in the most efficient and cost effective way.[1]