Opinions

Alaska delegation should press climate solution that benefits environment and economy

The recent climate talks in Lima, Peru (ADN, Dec. 15) produced an international agreement for each country to formulate its own individual plan to help mitigate climate change. The question is, what emission reduction approach will the United States bring to the table in 2015?

Unless Congress steps up, the U.S. will have to rely on a climate policy determined by the White House and the U.S. Environmental Protection Agency. Alaska and the nation as a whole would be better served by a legislative solution that more effectively addresses the connected problems of climate change and ocean acidification without hurting the economy. Given what is at stake in Alaska, we need Sen. Murkowski, Sen.-elect Sullivan, and Rep. Don Young to take a leadership role in shaping a U.S. climate policy that reduces greenhouse gas emissions, benefits the economy, and protects Alaskans.

Fortunately, such a solution does exist, and it happens to align with conservative principles of limited government and free markets without the need for regulations -- essential aspects considering the Republican majorities in Congress.

The solution I am referring to is a revenue-neutral carbon fee and dividend. Here is how it works: A steadily rising price is placed on the carbon content of fossil fuels and collected at the well, mine, or port of entry. This fee generates revenue that is returned in full to the public in the form of a dividend, much like the Alaska Permanent Fund dividend. To protect the U.S. economy and promote similar policies worldwide, fees would also be added to products imported from countries without a carbon fee, and rebates would be given to U.S. exporters.

This carbon fee is attractive for many reasons.

First and foremost, it is a free market solution that would avert the worst effects of climate change and ocean acidification. By putting a price on fossil fuel emissions, it would drive a transition to clean energy sources without restricting consumer choice. Even major oil companies such as Shell and BP favor a price on carbon that is predictable, market-driven, and transparent, like this one.

Second, by returning 100 percent of revenue to individuals in the form of a steadily increasing dividend, it protects consumers from price increases in energy and goods. A recent study by Regional Economic Models Inc. found that such a policy would also inject billions of dollars into the American economy, bolster gross domestic product, and add millions of jobs. And because it's revenue-neutral it does not increase the size of the government.

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Some may worry that a carbon fee might hurt Alaskans who already face high energy costs. To ensure this is not the case, our congressional delegation must take an active leadership role in shaping this legislation so that Alaskans will share in its economic benefits. For example, a simple, regionally adjusted dividend amount that factored in local cost of living increases due to the price effects of the carbon fee could protect those of us in the Interior and rural Alaska.

About 40 countries and 20 states, cities and provinces already price carbon or have a plan in place to do so, according to a World Bank Report. Our neighbors in British Columbia have led the way with a revenue-neutral carbon fee since 2008, resulting in a drop in fuel consumption and greenhouse gas pollution, all while maintaining economic growth that outpaced growth in the rest of Canada.

Alaska's lawmakers should follow that province's example and implement a carbon fee and dividend. It would protect our fisheries, avoid regulation by outsiders, and put revenue back into the pockets of Alaskans. The sooner it is implemented, the sooner we can begin to realize its benefits to both our environment and our economy.

Andrew McDonnell is a Fairbanks resident, co-leader of the Fairbanks chapter of Citizen's Climate Lobby, and an assistant professor of oceanography at the University of Alaska Fairbanks.

The views expressed here are the writer's own and are not necessarily endorsed by Alaska Dispatch News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)alaskadispatch.com.

Andrew McDonnell

Andrew McDonnell is a Fairbanks resident, co-leader of the Fairbanks chapter of Citizen’s Climate Lobby, and an Assistant Professor of Oceanography at the University of Alaska Fairbanks.

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