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A carbon tax to fight climate change

  • Published at 07:13 pm February 13th, 2017
A carbon tax to fight climate change

Political winds may change, but the fight against climate change should not be compromised.

The world was recently shaken when Donald Trump’s ascent to the US presidency threatened to overturn Barack Obama’s executive orders designed to fight the very real threat of climate change.

But climate change should not be a liberal versus conservative issue -- the concerns are universal and backed up by science, and if we fail to act, we will all be at risk, regardless of political affiliation.

With that in mind, a group of conservative experts, including former Bush advisor N Gregory Mankiw, have laid out a proposal to effectively and feasibly fight climate change while still upholding conservative principles.

The plan is built on four pillars: First, a gradually increasing tax on emissions is implemented. Second, the tax is returned to the citizens equally in the form of dividend checks, with the dividends decreasing over time as carbon emissions decrease. Third, rebates are granted for companies exporting to countries without carbon pricing and fees are applied on the carbon content of imported products. And finally, regulations made unnecessary by the carbon tax are eliminated.

Other countries, including Bangladesh, could take heed of this proposal, and incorporate a carbon tax in its policies.

Bangladesh is on the front lines of climate change, and stands to lose so much more than richer countries like the US due to its adverse effects.

We need to be smart about the climate battle, and do so without hurting the dynamism of our economy.

A carbon tax policy -- which is pro-growth and pro-competitiveness -- is what we need in this fight.

Inaction is simply not an option.