Letter: We can reduce climate change without growing government

Many people assume that any action to limit climate change will increase the size and cost of government. Indeed that has resulted from previous approaches, such as the Environmental Protection Agency’s carbon emissions regulations, and government programs subsidizing solar energy, wind energy, and electric vehicles.

But we can reduce climate change without growing government. Fossil fuels are the biggest source of greenhouse gas emissions from human activity. If we impose a steadily increasing fee on fossil carbon at the source (coal mine, oil or gas well, or imports), and immediately pay all of the revenue as uniform monthly dividends to all residents, market forces will drive down carbon emissions, and the dividends will spur the economy.

We won’t need those EPA regulations or energy subsidies. Administrative costs will be much smaller, because fewer companies will be involved — only the few that extract or import fossil fuels, not the many that use them — and dividends can be directly deposited in bank accounts, like Alaska has done for decades.

By requiring dividends to be distributed immediately, we can prevent revenue from being diverted for other purposes. And all but the heaviest carbon users will benefit.

This story was originally published July 26, 2016 at 3:50 AM with the headline "Letter: We can reduce climate change without growing government."