The world is faced with some big problems now and one of the chief ones among them is climate change and how it will only continue to get worse. There is just not enough push from governments and key business players to get consumers and big businesses to cut down on their carbon emissions. Carbon tax advocacy groups think they have the solution but they have just not had the funding to make a significant impact as far as implementing an across the board carbon tax. That is until now when some pretty big businesses have put some hefty financial support behind a new carbon tax advocacy group.
Who are these big business players that have stepped up to the plate and delivered? The companies are First #Solar, Exelon Corp and the American Wind #Energy Association (AWEA). They are backing a new carbon tax advocacy group called ‘Americans for Carbon Dividends’. Of course all of these businesses stand to profit from a carbon tax because they deal with renewable or other clean energy sources but that makes their monetary backing of the carbon tax advocacy group no less significant.
How Does a Carbon Tax Work?
For those of you who do not know how a carbon tax works we will provide you with a quick summary here.
One of the biggest sources of global warming and pollution is the burning of fossil fuels. A carbon tax is an additional tax that will be placed on such fossil fuels as gasoline and diesel fuel that when burned cause a tremendous amount of CO2 to be emitted into the atmosphere. These emissions are harmful to the air we all breathe and are said to be are widely thought to be a major contributor to global warming too.
Since the US is a free-market society, it’s thought that as the cost of such CO2 emitting fuels as gasoline and diesel fuel rise, Americans would naturally start to seek out lower cost alternative energy sources for such things as use in their cars and trucks. This would in turn stem the flow of fossil fuel produced CO2 emissions into the air. Some groups claim this can cut down on fossil fuel emissions as much as 50% over the next few decades.
When a ‘carbon dividend’ is attached to a carbon tax it provides a payment back to individual consumers which further encourage them to seek out alternative fuel sources and further reduce their dependence on fossil fuel use.
A Strong Carbon Tax Bill Failed To Gain Traction As Recently As 2017
It must also be noted that a carbon tax bill recently failed to gain traction in 2017 in the US House of Representatives. What’s interesting about this bill is it was not brought forward despite the fact it was backed by two highly respected political elder statesmen in former Secretary of States James A. Baker III and George P. Shultz.
The bill was thought to have a good chance to be brought forward because it was well thought out and prepared. It was what the writers of the bill called a ‘conservative climate solution’. That’s because it was said to be based on free-market principles which is the basis for most current business models.
Despite all this, the US House of Representatives is currently clearly opposed to any carbon tax because they feel it will hurt the American economy too much. Although it must be noted that it seems in 2018 that more republicans are starting to get onboard when it comes to passing some sort of carbon dividend legislation.
So what’s Different About the ‘Americans for Carbon Dividends’ Group?
As we have previously mentioned ‘Americans for Carbon Dividends’ group now appears to be well-funded. That is something many of the previous unsuccessful carbon tax advocacy groups were sadly lacking. It’s no secret that in today’s political environment money talks and expands your sphere of influence in political circles. The group has already said to have millions of dollars in funding led by a 1 million dollar donation from Exelon Corp. That’s significant because the group has not even started a formal fundraising campaign yet.
The group is also led by influential former Republican Senator Trent Lott who has managed to get the backing of former Federal Reserve chair Janet Yellen. This is very important in this movement gaining traction because she strongly feels that the carbon tax ‘makes sense’ and will not hurt the American economy.
It is clear that in the current political atmosphere a climate or carbon tax is not a high priority. But maybe, just maybe; this new carbon tax advocacy group can gain enough political support to change that.
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