How should a carbon fee be structured?

The carbon fee should be paid out in full to citizens as a carbon dividend – in equal shares, i.e. per capita.

This means that it is not a tax that ends up in a politically administered pot.

Instead, the money flows directly into the pockets of citizens.

Carbon fees finally lead to fair pricing of CO2 emissions and promote innovation because new energy solutions need to be developed fast.

At the same time, carbon dividends yield a positive income effect for those people who emit less CO2 per capita.