Hansen hates Cap-and Trade; Prefers a Green Redistribution Scheme
In a recent article in the Guardian, James Hansen “rails” against the cap-and-trade system being proposed in the United States. Now, he isn’t against the idea of placing a price on carbon, he just doesn’t like the idea that businesses could end up profiting from it.
Instead, he prefers something he calls a “fee-and-dividend” approach which is essentially a green redistribution of wealth scheme. Here is Hansen advocating this method at the University of South Carolina last spring:
As stated in the video, the rebate would be a set number so the less carbon you emit the bigger the rebate. Potentially, your rebate could exceed your tax so you would make money. Basically, the greener you are the more green($) you will receive.
However, while this method may sound better, it will still have negative affects, particularly on the poor. For example, Hansen mentions that companies may have incentives to invent better more efficient technologies. However, many may not be able to afford purchasing these new high efficiency items. Therefore, those that are well off may be more able to make the changes and reap the benefits, leaving the poor at best breaking even and at worst ending up in the red (paying more in carbon taxes then receiving in rebates).
Overall, the cap-and-trade or the fee-and-dividend system are unnecessary. Natural cycles constitute the majority of the climate changes with human contributions negligible at best.
To watch the entire presentation by Hansen and my rebuttals to some of his claims, click here.
