The current trend of inflation has mainly been caused by the disruption of supply chains and labor supply. As these disruptions are resolved, economists expect inflation to slow. Some members of Congress point to inflation as a reason not to act on climate now. Based on reviews of carbon pricing systems in Canada and Europe, inclusion of a carbon price and a citizen’s dividend, in budget reconciliation packages, has not heightened inflation and can help ease it.
The International Monetary Fund has determined that the most efficient and powerful method of combating global warming and reducing air pollution is increasing the price of carbon. Citizens’ Climate Lobby endorses such a policy. Budget reconciliation packages could raise carbon prices and include a dividend returned to U.S. households. A dividend would more than compensate for any rise in energy costs. Countries instituting a carbon fee have seen increased energy prices offset by decreases in prices for food, services and shelter. Returning carbon fee revenue to households hasn’t been inflationary. Dividends to households increase as the carbon fee does.
Call and write our legislators and advocate for “cash-back carbon pricing.” It hasn’t caused inflation in the real world and it helps reduce greenhouse gasses in the atmosphere.
Andrew Zeiler
Bayfield
