Laser Talk: Pollution pricing with equal dividends enhances equity and development

Currently, 49 countries price greenhouse gas pollution. Two countries, Austria and Canada, price greenhouse gas pollution and return the dividends to the people equally.

In a November 2021 peer-reviewed paper in Nature, researchers reported that a global 2C temperature*  can be met while also increasing well-being, reducing inequality, and alleviating poverty, if each country or region imposes a substantial carbon tax and refunds the revenues to its citizens on an equal per capita basis. When revenues are not used in such a progressive way, the model also verified that many of the poorest citizens are negatively impacted in the short-to-medium term. These results indicate that it is possible for a society to implement strong climate action without compromising goals for equity and development.

*With a few more policies in play we can achieve the 1.5C goal too.