CP creates a laundry list of economic benefits

Model results were able to estimate the effects of the policy on GDP, personal income, employment, prices, carbon dioxide emissions, mortality due to NOx and SOx emissions, revenues, monthly dividend amount, energy generation capacity by technology, energy generation by type, investment in power, population, and economic migration on both a regional and national level. Income and employment figures for each of 160 industry categories considered are included. These 160 industries encompass the entire economy. The results are all relative to a baseline case where there is no carbon tax (modeled by using the exact same set-up, with a $0/ton value for the carbon tax). In other words, all three models were run two times. Both times, the set-up was identical except for one thing: the price of carbon was either $0 from 2016-2035 (the baseline), or was $10 per ton in 2016 and increased by $10 every year after that (F&D).

Cumulative lives saved from reduce emissions.

Figure 3: Cumulative lives saved from avoided emissions by region under F&D. Region ENC, including Ohio, Indiana, Michigan, Illinois, and Wisconsin, has the most lives saved. 227,000 American lives would be saved in 20 years under F&D. REMI Study Highlights CO2 emissions decline 33% after only 10 years, and 52% after 20 years relative to the baseline, $0/ton of CO2 case (Figure 1). National employment increases by 2.1 million jobs after 10 years, and 2.8 million after 20 years. This is more than a 1% increase in total US employment we don’t get without a carbon tax (Figure 2)! 13,000 lives are saved annually after 10 years, with a cumulative 227,000 American lives saved over 20 years (Figure 3). $70-$85 billion increase in GDP from 2020 on, with a cumulative increase in national GDP due to F&D of $1.375 trillion (Figure 4). Size of monthly dividend for a family of 4 with two adults in 2025 = $288, and in 2035 = $396. Annually, this is $3,456 per family of 4 in 2025 ($1152 per capita–children get 1⁄2 dividend) (Figure 5). Electricity prices peak in 2026, then start to decrease. Real incomes increase by more than $500 per person in 2025. This increase accounts for cost of living increases (Figure 6).

Increase in GDP from Carbon Fee and Dividend

Figure 4: Annual additional GDP due to Fee and Dividend relative to no carbon tax. The numbers are positive due to a net increase in jobs and more consumer spending from the dividend. Over the 20 years of the study, GDP is $1.375 trillion higher than without F&D.

Maximum cost-of-living increase by 2035 is 1.7-2.5%, depending on region (Figure 7). Electricity generation from coal is phased-out by 2025. Biggest employment gains in healthcare, retail, and other services (excluding public administration). This is because people have more money in their pockets to spend, and these industries are labor-intensive, responding to increased consumer spending by creating more jobs. Regional Gross Product is steady or rising in all 9 regions.