The ’90s are over: 5 reasons to embrace carbon pricing today

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🗞️ Driving the news: Kimberly Clausing and Catherine Wolfram argue that it's time for U.S. politicians to embrace carbon pricing, shedding the outdated fears of political fallout reminiscent of the 1990s
• They present five compelling reasons why current conditions are ripe for such a policy shift, aiming to debunk the notion that carbon pricing is politically untenable in the United States

🔭 The context: The reluctance to implement carbon pricing stems from a political scare in the 1990s, when Democrats suffered losses after supporting a proposed BTU tax, a precursor to carbon pricing
• Despite historical apprehensions, evolving circumstances, including rampant climate disasters, international adoption of carbon pricing, and the Inflation Reduction Act, now favor the implementation of a carbon tax in the U.S

🌍 Why it matters for the planet: Carbon pricing is seen as an essential tool in the fight against climate change 
• It provides economic incentives for reducing greenhouse gas emissions and can make the U.S. competitive in a global market increasingly focused on sustainability 
• Furthermore, the revenue generated from carbon pricing could support the transition to clean energy and assist communities negatively impacted by such a shift

⏭️ What's next: Looking ahead to 2025, Clausing and Wolfram highlight the potential for carbon pricing to play a central role in broader tax reform efforts, addressing both fiscal challenges and the urgent need for climate action
• They emphasize the importance of overcoming outdated fears to make significant policy advancements

📈 One stat: In 2023, the U.S. experienced 28 “billion dollar” natural disasters, a significant increase from only five such events in 1993, highlighting the escalating impacts of climate change

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