CCS Designs Carbon Fee and Rebate For Local Job Gains

CCS Designs Carbon Fee and Rebate For Local Job Gains

Washington, DC. The Center for Climate Strategies (CCS) has completed macroeconomic design and analysis of a proposed carbon fee-and-rebate system that is positive for growth in employment for Washington, DC as a part of the city’s interest in establishing a price signal on carbon and generating economic growth. This work adds to a wave of state and local initiatives and a growing interest by Congress in price based, growth and employment promoting approaches to carbon management that help economically disadvantaged communities and business growth.

“This is a real demonstration of how intelligent design procedures can find win-win approaches for carbon pricing by combining expert insight on design needs, with iterative testing and stakeholder feedback using advanced analysis tools like the REMI Policy Insight Plus model,” said Scott Williamson, a Program Management Officer and the lead analyst on the effort.

CCS supported a working group of governmental and nongovernmental representatives convened by the Chesapeake Climate Action Network to design a system that would cut greenhouse gas reductions 20 percent from 2032 projected levels while expanding the city economy by 100 net new jobs per year without harm to lower income households. The winning scenario involves setting a rising price on emissions from electricity, heating energy, and transportation and returning 75 percent of the revenue as cash dividends to households. Another 5 percent is returned to small business as a tax offset, and the 20 percent is dedicated to investment in green infrastructure. 

(Photo: Scott Williamson of CCS briefs Washington, DC policy makers and stakeholders on macroeconomic modeling impacts of the carbon fee rebate proposal.)

Find the report and read more on the CCS website.