The Economists' Statement on
Carbon Dividends

The LARGEST STATEMENT OF ECONOMISTS In HISTORY

THE LARGEST NUMBER OF 

Nobel Prize
Winning Economists, ever.

27 Nobel Prize-Winning Economists

THE LARGEST NUMBER OF 

Federal Reserve Chairs, ever.

All living former Federal Reserve Chairs

THE LARGEST NUMBER OF 

CEA Chairs, ever.

15 former Chairs of the President's Council of Economic Advisers

AS WELL AS

3,500+ Economists
Across The Country

The largest number to endorse any policy on any topic, ever.

“Truly remarkable”

- Dr. Noah Kaufman (Center on Global Energy Policy, Columbia University)

“Basically every big deal US economist”

- Kate Mackenzie (Fellow, Center for Policy Development)

“Nearly every economist you’ve ever heard of”

- Dr. Justin Wolfers (Senior Fellow, Brookings Institution)

“People say economists don't agree on anything, but here's
one thing we do agree on: Carbon Dividends”

- Dr. Erik Brynjolfsson (Director, MIT Initiative on the Digital Economy)

“Perhaps the closest the economics profession has ever come to a consensus”

- University of Chicago Booth Business Review

“If I wrote a list of the economists I most admire, it would look awfully similar to those who signed [The Economists Statement on Carbon Dividends]”

- Michael R. Strain (Director of Economic Policy Studies, American Enterprise Institute)

“A remarkable document”

- Dr. John Cochrane (Senior Fellow, Hoover Institution at Stanford University)

“The largest public declaration in the history of economics”

- Dr. Martin Ravallion (Professor of Economics, Georgetown University)

“Bipartisan agreement on how to combat climate change”

- The Wall Street Journal

THE GUARDIANS OF 
AMERICAN PROSPERITY HAVE SPOKEN

All Endorsing One Plan
To Tackle the Climate Threat and Safeguard our Economy

THE CARBON DIVIDENDS PLAN 

Put a price on carbon pollution.

Return 100% of the revenue to Americans.

Ensure American competitive advantage.

Eliminate unnecessary regulations.

The Statement

Unveiled January 2019

Global climate change is a serious problem calling for immediate national action. Guided by sound economic principles, we are united in the following policy recommendations.

I.
A carbon tax offers the most cost-effective lever to reduce carbon emissions at the scale and speed that is necessary. By correcting a well-known market failure, a carbon tax will send a powerful price signal that harnesses the invisible hand of the marketplace to steer economic actors towards a low-carbon future.

II.
A carbon tax should increase every year until emissions reductions goals are met and be revenue neutral to avoid debates over the size of government. A consistently rising carbon price will encourage technological innovation and large-scale infrastructure development. It will also accelerate the diffusion of carbon-efficient goods and services.

III.
A sufficiently robust and gradually rising carbon tax will replace the need for various carbon regulations that are less efficient. Substituting a price signal for cumbersome regulations will promote economic growth and provide the regulatory certainty companies need for long-term investment in clean-energy alternatives.

IV.
To prevent carbon leakage and to protect U.S. competitiveness, a border carbon adjustment system should be established. This system would enhance the competitiveness ofAmerican firms that are more energy-efficient than their global competitors. It would also create an incentive for other nations to adopt similar carbon pricing.

V.
To maximize the fairness and political viability of a rising carbon tax, all the revenue should be returned directly to U.S. citizens through equal lump-sum rebates. The majority ofAmerican families, including the most vulnerable, will benefit financially by receiving more in“carbon dividends” than they pay in increased energy prices.

Original Signatories

An Unprecedented Show of Force from Our Nation's Leading Economists

A. Michael Spence (1)
Alan B. Krueger (3)
ALAN GREENSPAN (2, 3)
ALVIN E. ROTH (1)
AMARTYA K. SEN (1)
ANGUS S. DEATON (1)
AUSTAN D. GOOLSBEE (3)
BEN S. BERNANKE (2, 3)
BENGT R. HOLMSTRÖM (1)
CHRISTINA D. ROMER (3)
CHRISTOPHER A. SIMS (1)
DANIEL KAHNEMAN (1)
DANIEL L. MCFADDEN (1)
EDMUND S. PHELPS (1)
EDWARD P. LAZEAR (3)
ERIC S. MASKIN (1)
EUGENE F. FAMA (1)
FINN E. Kydland (1)
George A. Akerlof (1)
George P. Shultz (4)
Harvey S. Rosen (3)
Janet L. Yellen (2, 3)
Jason Furman (3)
Lars peter Hansen (1)
LAURA D. Tyson (3)
Lawrence H. Summers (4)
Martin N. Baily (3)
Martin S. Feldstein (3)
Michael J. Boskin (3)
Myron S. Scholes (1)
N. Gregory Mankiw (3)
Oliver S.D. Hart (1)
Paul A. Volcker (2)
Peter A. Diamond (1)
R. Glenn Hubbard (3)
Richard H. Thaler (1)
Robert E. Lucas Jr. (1)
Robert F. Engle (1)
Robert J. Aumann (1)
Robert J. Shiller (1)
Robert K. Merton (1)
Robert M. Solow (1)
Roger B. Myerson (1)
Thomas J. Sargent (1)
William F. Sharpe (1)

(1) Nobel Laureate Economist
(2) Former Chair of Federal Reserve
(3) Former Chair of Council of Economic Advisers
(4) Former U.S. Treasury Secretary

View the Full List of Economists

An Unbelievable Amount of Bipartisan Brainpower
Economists are the custodians of our nation’s economic well-being. Their research has birthed an abundance of important insights, and their stewardship has helped make the United States the greatest economic superpower in the history of the world. In 2019, in an unprecedented show of force, the economics community—in a statement that spans economic disciplines and political persuasions—stepped forward to issue a clarion call on climate policy. In the face of a genuine threat to American prosperity and freedom, these architects of America’s economic strength have pointed the way yet again. There has never been a statement by economists this large in American history, and we ignore them at our peril.

Supported By Economists At Hundreds Of

College Campuses Across the Country

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This website is an independent project of Students For Carbon Dividends