Letter: GOP should boost market-based clean energy plan
Market-based clean power plan
Instead of fighting President Obama’s “clean power plan,” Republicans should introduce a conservative alternative. President Ronald Reagan’s Secretary of State George Schultz proposed a market-based alternative in 2013: a carbon fee and dividend. Levy a steadily rising fee on carbon producers, and refund the money back to U.S. households. This sends the market a clear signal that carbon intensive products will be more expensive in the future, so investment shift. Businesses get freedom to choose how to spend their money instead of conforming to EPA regulations.
Because revenue from the fee goes back to households, government doesn’t grow. According to economic modeling, the dividend grows the economy by 2.8 million jobs and $1.375 trillion over 20 years. It also reduces the U.S. climate footprint by 50 percent. House Speaker Paul Ryan should promote the conservative approach.
Bradley Aaron, Ann Arbor