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_______, This is a very perceptive question. First thing, note that the
program doesn't end until two requirements are fulfilled. The covered
emissions have to drop by 90% and the monthly adult dividend has to be
$20 or less for 3 consecutive years. But according to the mandated
emissions schedule for hitting 90% reduction by 2050, the carbon fee in
that year would be $315 and the adult dividend would still be $57.
Assuming the annual emissions reduction target would still remain at 2.5%
(from 2016 levels) as specified in the text, the dividend would not drop
below $20 until you exceeded 97% emissions reduction.
In my mind, this is so far in the future, and there are so many massive
changes in our energy infrastructure and behavior that would have taken
place, it's impossible to predict much of anything this far ahead. Would it
even be possible to reduce emissions by an annual 2.5% if they are
_______: I believe you are entirely correct that the carbon fee mechanism
must remain in place to prevent backsliding. We might write into the bill a
halt in the rise in fees at some level, and then hold the level constant and
continue collecting the fees.
I suggest, however, that we separate the fee level issue from the dividend
distribution issue.
____: You provided some good data re the value of dividends. They will
be significant for a long time for the dividend recipients. But there is an
administrative cost for allocating and distributing them.
I suggest that dividend distribution be discontinued when the administrative
cost for this part of the CFD program is higher than the amount of revenue
being distributed.
Thanks ____, the numbers help as I had not gone through those in as
much detail. I agree our energy systems will be so different from today that
predicting them at this point has huge variability. I’d also HOPE that there
_______: You write in your last post: “I’d also expect that we will have
modified our emission schedules several times by the 2050+ timeframe as
we understand the consequences, impacts and costs better.” I agree.
I will also note that H-7173 makes no provision for regular in depth reviews
of CFD program outcomes [except for GHG emission reductions] and no
provision for an efficient mechanism for carbon fee schedule adjustments
[both up and down] if these are appropriate.
This is a critical omission. I propose a fix in the Forum Policy topic “Carbon
fee schedule and real time adjustments” and also on this web page:
<https://www.jerseygrandpa.com/?p=6254>