Clean Electricity Payment Program vs. Carbon Fee

Criteria CEPPCarbon TaxCarbon Fee & Dividend
% of emissions covered25% (only power generation)Up to 100%80% (excludes farms and military)
Incentivizes energy conservation?No-designed to keep utility rates unchangedYesYes
Incentivizes innovation across entire economy?NoYesYes
Incentivizes currently unknown technology?NoYesYes
Reduces emissions efficiently?NoYesYes
Picks low-hanging fruit first?NoYesYes
CO2 emission reductionModerateHighHigh
Reduces health damage from fossil fuels?SomeMoreMore
Net cost to average householdZero (contingent on undecided funding)Significant after a few years of increasesZero (all revenue rebated to households monthly)
Protects fossil fuel jobs?Not if it succeeds in reducing emissionsNoNo
Will WTO permit border carbon adjustment to protect US industrial jobs and push carbon price around the world?NoYesYes
Percentage of revenues rebated to householdsFew or no revenues; no rebateUp to 100%100%
Effect on budget deficitSignificantly increases (especially including renewable producer subsidies)Significantly reducesZero (revenue neutral)
Job creation: inventors, engineers, factory workers, construction workers, and entrepreneursModerateHighHigh
Administrative complexityHighExtremely lowVery low
Vulnerable to gaming, political influence, and fraud?YesNoNo
Treats each emitter differently?YesNoNo
Subject to legal challenges?YesNoNo
Subject to attack by executive branch?YesNoNo
Job creation: lobbyists, lawyers, consultants, and accountantsHighClose to zeroClose to zero
Bill written?NoNoYes
Length of billNot writtenLess than 37 pages37 pages
Cosponsors Bill not writtenBill not written81 in House
Must expire in 10 years to satisfy reconciliation?YesNoNo