Double Dividend: Make Money by Saving Nature
Friday 16 July 2010
by: George Lakoff, t r u t h o u t | Op-Ed

(Image: Lance Page / t r u t h o u t; Adapted: Kevin Dooley, Chris Dlugosz)
Saving nature is the central issue. Carbon fuels destroy nature. The Gulf Death Gusher is the most visible sign. But signs are everywhere. Overall global warming increases hurricanes and floods; destroys habitats for plants, fish, birds and ground animals; spreads deserts; causes deadly waves; and destroys glaciers and our polar ice caps. The use of carbon fuels has been destroying nature. Our job now is to save it.
Interestingly, there is a short, 39-page bill before the Senate that would allow us to save nature and get paid substantially for doing it. It is the CLEAR bill, first suggested by Peter Barnes and introduced by Maria Cantwell (D-Washington and Susan Collins (R-Maine). It is simple; it works and it pays you!
The principle behind it is this: We US citizens own the air over the US equally. Carbon-fuel sellers are dumping pollution in our air, not just poisoning the air, but destroying nature. At least they should pay for permits to dump, poison and destroy and should be forced year-by-year to stop. Who should the sellers pay for permits? All of us, the citizens who live here, should be paid handsomely. And there should be predictably fewer permits every year, till the practice ends or reaches tolerable levels.
Here's how cap-and-cash works. Carbon-fuel profiteers introduce polluting fuels at only 2,000 distribution points in the US. The Environmental Protection Agency (EPA) already monitors how much polluting fuel each seller distributes. The CLEAR Act requires sellers to compete at auction each year to buy pollution permits to sell their poisonous fuel, with a minimum and maximum price per permit set each year. Every year, for 40 years, the number of permits is reduced, until 80 percent of the carbon pollution has been eliminated.
Who gets the permit money? You do. The money goes into a trust. Twenty-five percent goes to developing nonpolluting fuels and mitigating existing environmental disasters. Most of it - 75 percent - is distributed equally to all citizen-residents every month via electronic bank transfers. A family of four, the first year would get between $1,000 and $1,500, and the amount would go up each year. Why? The law of supply and demand. As there are fewer permits to sell fuel and as the air gets cleaner, the price rises and you get more cash.
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We all get a double dividend: cleaner air, while saving nature, and a significant cash dividend for owning the air. The hundreds of billions of dollars going to citizens will be spent all over the country and will create jobs. Everyone wins except the polluting fuel companies - the BP's of the world.
The Criteria for Success
Administratively Simple: It eliminates bureaucracy and it brings credibility and transparency. It just requires computer programs. It can be publicly checked to see if it is working. There are no hidden deals or details.
Market Driven Without Government: The trust will be outside of government. Market mechanisms will determine the value of the permits and, hence, the money paid to citizens.
Gradual Transition: There would be no short-term market disruption. The transition would be gradual.
Market Driven and Convenient: Businesses that use carbon fuels will not have to monitor their pollution. They will have a market-based incentive to switch gradually to nonpolluting fuels.
Predictable: Business leaders will be able to plan for the future with no huge rush.
Encourages Entrepreneurship: It will create incentives for innovation and new energy industries.
Job Creation: The cash going into new energy industries and being spent all over the country will create jobs.
The Opposite of Taxation
Anti-Tax: The CLEAR bill puts money into the pockets of most citizens instead of taking money out.
Saves Money: The cost of polluting fuels will rise temporarily, while you get cash. Who gets more, you or the oil and coal companies that raise their prices?
You will, unless you're rich and can afford it! The richer you are, the more energy you use. If you are among the 70 percent of citizens in the lower- and middle-income brackets, you will get more in payments from the CLEAR bill than you will pay for increases in fuel prices.
Why Will Carbon Fuel Prices Eventually Fall? The prices depend on demand. Two factors will reduce demand over time:
First, the availability of noncarbon fuels. The CLEAR bill's 25 percent will help develop noncarbon alternatives, which will reduce demand.
Second, investment in not needing carbon fuels through, say, insulation and energy efficiency, will reduce demand cumulatively. A barrel of oil or ton of coal saved the first year through insulation or energy efficiency will also be saved year after year. This will cumulatively reduce demand for carbon fuels.
Double Job Creation: Eliminating the need and, hence, the demand for carbon-polluting fuels will create jobs in two ways. First, new energy and energy-efficiency industries will need employees. Second, money saved on energy can be invested in, or spent on, enterprises that will create jobs. Both are market mechanisms. The jobs will mostly be in the private sector.
Politically Achievable: Putting money in the pockets of people who will spend it will be politically popular, as will job creation.
Who Loses?
Any legislation that greatly reduces the use of carbon fuels - whether the CLEAR bill or the current cap-and-trade bills - will create "losers."
The carbon-polluting industries - the BP's of the world - will lose, unless they invest their vast profits in nonpolluting energy and in energy efficiency: in industries that lower or eliminate the need for energy use. Those industries that are committed to the continued destruction of nature should lose, unless they change their commitment to saving nature.
The pollution-dumping industries (e.g., electric power companies) will no longer be able to save money by not cleaning up their pollution and dumping it in our air instead. Having to switch to nonpolluting energy or pay more for polluting energy will count as a "loss," since they will make less short-term profit. In the long run, if they make the switch to nonpolluting energy and energy efficiency, those profits will be made up. But the short-term "losses" are what will count to investors.
Right-wing politicians, supported by those industries, will also lose if they cannot deliver to their nature-destroying supporters a defeat of any nature-saving legislation. Those politicians will also lose because their anti-environmental ideology, which says that nature is to be indefinitely exploited for profit, will be defeated.
The Lies
Not surprisingly, those who stand to lose are spreading lies about carbon-cutting legislation.
The Tax Lie: Suppose there were a direct tax on carbon. At the gas pump, the gas companies would list this as a tax and add it to the price of gas at the pump. Now, suppose that nature-saving legislation results in a sort-term rise in gas prices because oil companies want to preserve their previously astronomical level of profits. In both cases, the price of gas would rise. So, the argument goes, nature-saving legislation has the same result as a tax and, therefore, it is a tax.
In the case of the CLEAR bill, the lie would be clear: Seventy percent of the population would be making more than enough extra money to offset the rise in prices. But what is not said, is that the prices at the pump would not rise if the oil companies made ordinary profits rather than excessive profits. The rise at the pump would, to a large extent, come from making sure that wealthy oil executives and investors insisting on outrageously high profits.
Also not figured in is the cost of continuing to destroy nature indefinitely into the future: the costs of more oil spills; more mountain tops blown into streams; of more glacial sources of water as glaciers and snow caps melt; of more and more hurricanes, floods and fires; of the loss of arable land to the spread of deserts; of the loss of fish and forests - and most of all, the cost of the quality of life on earth.
At the heart of the Tax Lie is the failure to figure in systemic costs, the real costs - both financial costs, life costs and quality of life costs - and the failure to count greed.
The Job Lie: As we have seen, the CLEAR bill would create jobs, as would any legislation seriously reducing or ending the use of polluting fuels. A certain number of jobs would indeed be lost gradually in the nature-destroying industries as demand for polluting fuels declined, but those would more than be made up for as nature-saving fuels and nature-saving energy efficiencies more than made up for the jobs lost.
The Simple Truths
We need to save nature, not destroy it. We can start to do so while making money, stimulating the economy and creating jobs.
Tell everyone you know about the Clear Act.

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Comments
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Cap and cash is a fantasy
Fri, 07/16/2010 - 10:54 — Jerry Silberman (not verified)Cap and cash is a fantasy that doesn't get to the root of the problem, that pollution and the continuing destruction of the biosphere, and us with it is inevitable as long as we think of profit, growth, and money as real and useful categories. Nature is cyclical, not linear, nothing in nature has a net profit, everything is used or reused directly, not mediated by cash. Giving people the right to pollute for money has been tried, failed and is a dangerous diversion.
This carbon tax credit idea
Fri, 07/16/2010 - 10:54 — Liced-christ (not verified)This carbon tax credit idea is neoliberalism's solution to neoliberal-spawned problems. It's another market solution that should actually be solved by the welfare state, re-stating and re-grabbing of its authority over private enterprise.
In his last article, Lakoff criticized, rightfully, the mindset of neoliberalism, in which profit and cost benefit analysis are at the root of all our problems. Now, here, as if not recalling a single word from his previous article, Lakoff takes the opposite position, in favor of money-based, cost-effective solutions.
You are quickly losing your credibility as a progressive voice, George.This is Blue-Dog talk, not progressive talk.
" At least they should pay for permits to dump, poison and destroy and should be forced year-by-year to stop. Who should the sellers pay for permits? All of us, the citizens who live here, should be paid handsomely. And there should be predictably fewer permits every year, till the practice ends or reaches tolerable levels."
I see, at least they should pay the citizenry who now simply stuff their pockets until it all dwindles down to a few fines changing the consciousness of the USA. But what happens if they can afford to keep polluting?" Do you just allow them to keep paying us off?
Like many great ideas . . .
Fri, 07/16/2010 - 11:32 — BillyDoc (not verified)Like many great ideas . . . there is a small detail. A detail absolutely guaranteed to kill this whole plan. It is this:
Imagine you are the CEO of BP, and are thinking it's time for a new yacht. You are faced with the above plan, which will cost BP billions of dollars in lost profits, BUT for a mere few thousand dollars you can make some strategic "donations" to the appropriate "campaign funds" of those gentlemen we all know that work the betrayal business and make it all go away. Does the phrase "coin-operated congressman" ring a bell?
Yachts are expensive, and the choice for a poor CEO is clear. Besides, the worse it gets for "We the People" the easier it is to control them through economic leashes. A "win-win" situation for the CEOs of the world.
This situation will prevail until "We the People" forsake our comfortable couches, turn off our damnable TVs and start exercising that muck between our ears for a change. Actually DOING SOMETHING ABOUT IT would be good too.
Yes another "trust" to
Fri, 07/16/2010 - 12:18 — Anonymous (not verified)Yes another "trust" to replace the raided social security "trust". Trust no one. Does the profit motive make the world a better place? Has it ever?
"Saving nature is the
Fri, 07/16/2010 - 19:06 — Anonymous (not verified)"Saving nature is the central issue." Lakoff says. Wrong. Understanding that we are nature is the central issue. Lakoff is out of his element. "We US citizens own the air over the US equally." Lakoff continues. Wrong again. That's what got us into this mess in the first place. Thinking we OWN every fucking thing in, and out of, sight. The problem as I see it is that most of us are wholly disconnected from Mother Earth. Even the language we use to speak of her is disrespectful. We are no longer in tune with the earth's rhythms. We have tainted our relationship with the universe by consuming ourselves in this false world of things. The consequence of this disconnection is devastating. Man made distractions occupy most of our day. We insulate ourselves from all other forms of life, save for our dogs and cats. We swim in the "pest control" chemicals we douse on the earth's skin. We spray millions of gallons of poison on the soil to kill marijuana, to kill weeds, to kill, kill, kill. Lakoff says, "Carbon-fuel sellers are dumping pollution into our air...." isn't that a bit disingenuous, George? Are they producing all that oil and gas for themselves? How did you get to work, George? Our present way of doing business illustrates very vividly how out of touch we are with our world, hoping that "free markets" will solve this problem. "We need to save nature, not destroy it. We can start to do it while making money...." Oh please. Who are you talking to, George? Haven't we gone this route before? I believe George Lakoff is dead wrong. I disagree with his entire premise.
Lakoff's entire Criteria for Success can be refuted item by item. It's a sales job.
George Lakoff, you've framed the issue poorly. "We" are the problem. Until we transform ourselves, no market-based, technology reliant approach will work. Those of us who spend most of our time indoors are the problem, precisely because of our inability to internalize the world around us.
To paraphrase, "We save what we love, and we love what we know." Saving the earth will not be born of urban dwellers.
Wait! Wait! George Lakoff
Sat, 07/17/2010 - 11:11 — Joanne Baek (not verified)Wait! Wait! George Lakoff misses the greatest thing about the bill--and which answers many of the criticisms in other comments so far.
Section 5(e) of the CLEAR Act sets up an "energy efficiency consumer loan program" through which US residents can take advances on their own future dividends for use specifically to lower emissions and reduce their energy costs. In other words, rather than waiting for government and industry to advance renewables, people can obtain funding to install their own solar and wind systems, (or winterize, etc.) and thereby sell clean energy into the grid while reducing their own costs.
A cap and dividend program is lightyears ahead of cap and trade. This bill has even taken cap and dividend a step ahead, handing citizens the means to drive the clean energy transition by funding personal initiative to install solar generation, etc.
You can read more about cap and dividend at www.capanddividend.org
I hope you'll look into it immediately, and then call you senators and ask them to support the cap and dividend provisions of the CLEAR Act, S. 2877. You can reach your senators' offices by calling 202 224 3121 and asking them by name, or by telling the operator what state you are from.
This is urgent now. Legislators are looking to decide on climate legislation immediately, and so far they are working only on a cap and trade approach. It would give you and me little new power to make a difference. The CLEAR Act would give us enormous power to help. PLEASE call them!
Some previous comments make
Sat, 07/17/2010 - 19:30 — Brian (not verified)Some previous comments make some good general criticisms, but they don't give better ideas for solving the problem. Saying we each need to do our part or we have to change our behavior or way of looking at the world has been tried before too, and it's been a miserable failure. It may sound good, but it doesn't change the situation that we need to change.
It's not so much that "we" are the problem. Our system is the real problem. Yes, we (mainly people who lived before us) created the system, so in that sense we are the problem. And we are part of nature, so you could even say nature is the problem. But this bill is an attempt to change the system, in real, concrete, not just philosophical ways. It's not perfect, but it's much, much better than what was passed in the House last year or the Kerry-Lieberman bill.
You may not like the place money plays in our world, but that doesn't change the fact that it is a very important part of our system that influences and even controls much of what we do or don't do. It's much better to use it to make beneficial changes to the system than to just fantasize about a world without money. It's virtually impossible to survive without money in the current system, and it's virtually impossible to not emit greenhouse gases, directly or indirectly. That is because our system is based on these things. If we change the system, so that bad energy is expensive and good energy is cheap, people will naturally gravitate in the right direction.
We must do this, actually do it, in the real, physical world. If you can come up with a better way, by all means let everyone know. But you have to also get Congress to pass it. Good luck!
Global warming / carbon
Mon, 07/19/2010 - 15:16 — Anonymous (not verified)Global warming / carbon pollution is a hoax and a method to tax and control humanity - a satanic agenda. Google "Climategate"!!!
And you earth worshipers are part of this satanic agenda - wittingly or unwittingly!!
Good Ol' Leo di Caprio! Was
Mon, 07/26/2010 - 14:22 — Frances in California (not verified)Good Ol' Leo di Caprio! Was it he, or Chris Nolan who made sure that "Inception" quoted you, George?
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