California Climate Bill Should Give Cash to Consumers

A state panel recommended that most of the proceeds from a proposed carbon tax in California, set to take effect in 2012, should be given back to consumers. The 16-member Economic and Allocation Advisory Committee, charged with figuring out the most cost-effective way to implement a tax on carbon emissions, threw its support behind a so-called “cap-and-dividend” approach.

Such a plan would set a steadily decreasing limit on CO2 releases by major emitters, place a price on carbon dioxide emissions, and then give most of the revenue back to citizens.

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