Energy Innovation and Carbon Dividend Act
The letter praising the Energy Innovation and Carbon Dividend Act envisions no harm done by this bill.
Unfortunately, the bill does not take into account the realities of the world in 2019.
First, 1,600 new coal plants are planned or under construction in the world: 1,171 in China to add to its 2,363 existing plants.
Second, the use of coal, gasoline and other fossil fuels is growing in the world — not shrinking. Third, a carbon fee on fossil fuels will raise prices across the board.
But it gets worse, because each year the U.S. misses the carbon reduction target, the fee goes up $15 per ton instead of $10 — so it is easy to forecast that the carbon fee could be between $50 and $100 per ton in the next several years.
The Energy Innovation and Carbon Dividend Act with monthly payments to all Americans and supposed manufacturer incentives sounds great, but is a feel-good plan that is unrealistic, is inflationary and attempts to correct trade imbalances with energy policy.
Instead of penalizing fossil based fuels and creating another Washington bureaucracy, Congress needs to double down on meaningfully incentivizing alternate energy source development such as nuclear, solar, wind and hydroelectric.
Mark D. Hood