Economists' Statement on Carbon Dividends explained
The Economists’ Statement on Carbon Dividends is a joint statement signed by over 3,500 U.S. economists promoting a carbon dividends framework for U.S. climate policy. The statement was organized by the Climate Leadership Council and originally published on January 16, 2019 in The Wall Street Journal with 45 signatories, including Nobel Prize winning economists, former chairs of the Federal Reserve, former chairs of the Council of Economic Advisors, and former secretaries of the Treasury Department.[1] [2]
Since its original publication, the statement has been signed by over 3,500 U.S. economists and has been recognized as the largest statement in the history of the economics profession.[3] [4] [5]
Summary
The statement recognizes an immediate need for climate action and offers five policy recommendations:
- A carbon tax is the most cost-effective method of reducing carbon emissions at the necessary scale and speed.
- The carbon tax should be revenue neutral and designed to increase every year until emissions reductions goals are met.
- A sufficiently robust carbon tax can replace carbon regulations that are less efficient.
- A border carbon adjustment system will prevent carbon leakage and enhance the competitiveness of American firms that are more energy-efficient that their foreign competitors.
- The carbon tax's revenue should be distributed to U.S. citizens in equal lump-sum payments.
Reception
The statement was praised for the spectrum of economic thought and political opinion represented by its signatories. Former Harvard University President and U.S. Treasury Secretary Larry Summers called the statement’s proposal “one of the few ideas of economic policy that commands broad, bipartisan support.” The Chicago Booth Review noted that it was “perhaps the closest that the economics profession has ever come to a consensus.”[6] Former chair of the Federal Reserve and the CEA Janet Yellen praised the statement for its broader political implications, saying it “represents a major tipping point in U.S. climate policy.”[7]
Original Signatories
The original forty-five signers of the statement were (sorted alphabetically):
- George Akerlof
- Robert Aumann
- Martin Baily
- Ben Bernanke
- Michael Boskin
- Angus Deaton
- Peter Diamond
- Robert Engle
- Eugene Fama
- Martin Feldstein
- Jason Furman
- Austan Goolsbee
- Alan Greenspan
- Lars Hansen
- Oliver Hart
- Bengt Holmström
- Glenn Hubbard
- Daniel Kahneman
- Alan Krueger
- Finn Kydland
- Edward Lazear
- Robert Lucas
- N. Gregory Mankiw
- Eric Maskin
- Daniel McFadden
- Robert Merton
- Roger Myerson
- Edmund Phelps
- Christina Romer
- Harvey Rosen
- Alvin Roth
- Thomas Sargent
- Myron Scholes
- Amartya Sen
- William Sharpe
- Robert Shiller
- George Shultz
- Christopher Sims
- Robert Solow
- Michael Spence
- Lawrence Summers
- Richard Thaler
- Laura Tyson
- Paul Volcker
- Janet Yellen
References
- News: January 16, 2019. Economists’ Statement on Carbon Dividends. The Wall Street Journal. 2020-01-02. https://archive.today/20200102005448/https://www.wsj.com/articles/economists-statement-on-carbon-dividends-11547682910.
- News: Dlouhy. Jennifer. January 16, 2019. From Greenspan to Yellen, Economic Brain Trust Backs Carbon Tax. Bloomberg.
- Web site: All Signatories. Economists' Statement on Carbon Dividends.
- News: Mufson. Steven. February 13, 2020. The fastest way to cut carbon emissions is a ‘fee’ and a dividend, top leaders say. The Washington Post.
- News: Hook. Leslie. February 17, 2019. Surge in US economists’ support for carbon tax to tackle emissions. Financial Times.
- News: Maiello. Michael. Gural. Natasha. February 4, 2019. The Tax that Could Save the World. Chicago Booth Review.
- News: Siegel. Josh. January 16, 2019. Top economists of both parties endorse carbon tax and dividend to fight climate change. Washington Examiner.
External links
