Benefits and Costs to Rural Alaska Households from a Carbon Fee and Dividend Program

• Main Author: Colt, Steve
• Format: Report
• Language: English
• Published: Institute of Social and Economic Research, University of Alaska Anchorage 2015
• Subjects: Arctic; Hampton; Alaska
• Online Access: http://hdl.handle.net/11122/5595

This paper analyzes the benefits and costs of a carbon fee‐and‐dividend (CFD) policy to individual rural Alaska households. The three study area regions are the Bethel Census Area, the Wade Hampton Census Area, and the Northwest Arctic Borough. These three regions have the state’s highest fuel prices and very cold climates. The CFD policy consists of two elements. The first is a fee of $15 per metric ton of CO2 beginning in 2016 and increasing by $10 per ton in each subsequent year. The second is the complete return of all fees to households in the form of dividends, which are estimated to equal $300 for each adult plus $150 for each child (up to two). The annual dividends would increase in future years commensurate with the total amount of fees. Citizens' Climate Education Corporation Summary / Introduction / Dividends to households / Carbon fees paid by households / Discussion / References