Dividends would benefit African Americans

Returning carbon revenue to all Americans equally would disproportionately benefit African-Americans, according to a study by Andrew Hoerner and Nia Robinson. While the poorest would benefit most, the black middle class would gain as well.

The study, published by the Environmental Justice and Climate Change Initiative, analyzed the effect of different climate policies on African-American households. It found that cap and dividend “would create a disproportionate benefit to African American households, who have a greater benefit or a lower cost in every decile.

Overall, at a $50/ton carbon price, the African American community would see net benefits amounting to nearly two percent of the total income of all African Americans.”

In addition, the authors noted, regular per capita dividends “would transform the way the public thinks of the atmospheric commons…There would be a large, permanent increment to people’s support for the [cap], and a lively public attention that could prevent many abuses.”

The study also commended a hybrid proposal which would return 62% of auction revenue in equal dividends, use 18% for extra payments to the poor and 20% for energy efficiency investments.