TEXT OF COMMENTARY
Scott Jagow: Now, some thoughts from commentator Robert Reich on global warming.
Robert Reich: The best idea I’ve heard so far to deal with global warming is not a carbon tax. I can’t imagine any politician calling for higher taxes affecting the middle class. Or for that matter, the middle class — already squeezed by high energy prices and stagnant wages — putting up with it.
The winning idea is not a cap-and-trade system, either. That system would allow companies to continue polluting, just require them to buy the right to pollute more from other companies that keep their dirtying to a minimum. Today’s biggest polluters — those who’ve done least to reduce their emissions — would be the biggest winners, because they’d get the highest caps.
No, the best idea I’ve heard is described as a carbon auction. Companies would have to bid for the right to pollute. And, most ingeniously, the money raised in the auction would be shared equally by all citizens in the form of yearly dividend checks. Just like the residents of Alaska now get yearly dividends for their share of the state’s oil revenues.
I mean, it’s our atmosphere, right? Think of a national park or a national forest. No company is simply allowed to take what they want from it, free of charge. Why should the atmosphere be any different?
In a carbon auction, companies would have to bid against other companies for a portion of the atmosphere they intend to use — within overall limits that reduce pollution levels.
Get it? It’s win-win. The auction market itself determines who can pollute and by how much. And since companies will inevitably want to reduce their bidding costs, they’ll search for new technologies that cut their emissions.
And even if companies pass on increased costs to their customers, we’ll still be better off because we’ll get dividend checks and cleaner air.
Message to presidential candidates: American voters will buy this one. And it’s good policy.
Jagow: Robert Reich was Labor Secretary under President Clinton. He now teaches public policy at the University of California Berkeley. In Los Angeles, I’m Scott Jagow. Thanks for tuning in and have a great day.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
Donate now to get almost any thank-you gift.