American Petroleum Institute proposes U.S. adopt carbon tax

I suspect this proposal will allow oil companies to fight activist investors. I don’t believe in the effectiveness of any carbon tax or cap & trade scheme.

The API proposal calls for assessing gasoline wholesalers, power plants and others a tax starting at $35 to $50 a ton for carbon dioxide generated by the fossil fuel they sell or use, with annual adjustments for inflation and other factors, according to the document reviewed by the Journal,

Some Democrats who once supported a carbon tax now oppose it, on grounds that the costs are passed on to consumers, including many who can’t afford it. The API proposal suggests rebating some of the revenue collected by the carbon tax to households and to invest the rest of the money in new technology.

The draft proposal says a carbon tax is “the most impactful and transparent way to achieve meaningful progress on the dual goals of reducing greenhouse gas (“GHG”) emissions while simultaneously ensuring continued economic growth.”

The measure is a follow-up to last year’s decision by API to push Congress for legislation to price carbon emissions across the economy, in what was a policy turnabout a decade after the organization helped to kill a similar plan.

Oil Trade Group Drafts Carbon-Tax Proposal That Could Raise Prices at the Pump – WSJ

Image by Gerd Altmann from Pixabay