October 16, 2007

HOW POLICIES TO ADDRESS CLIMATE CHANGE CAN BE FAIR
TO THE POOR AND FISCALLY RESPONSIBLE

The Center on Budget and Policy Priorities held a press briefing in the Zenger Room of the National Press Club on Tuesday, October 16 at 12:30 p.m. (ET) to discuss two critical considerations as policymakers develop approaches to reduce greenhouse gases:  protecting low-income families and elderly individuals, and ensuring that climate change legislation is designed in a fiscally responsible manner.

Among the leading approaches to climate-change are “cap and trade” systems that create a limited pool of permits for energy producers in order to restrict their emissions of greenhouse gases.  If too many of these permits are given away — a danger in many current cap and trade proposals — the gap between rich and poor will widen: energy companies will reap windfall profits, while consumers — particularly those with low incomes — will be left to struggle with the increased energy prices such a system would entail. 

By contrast, if the permits are auctioned off and the revenues are used for public purposes, including protecting low-income consumers, then a climate-change policy can be both fiscally and environmentally responsible.

David Doniger, policy director at the Climate Center of the Natural Resources Defense Council (NRDC), participated in the briefing.

The Center also released new estimates of the amount of revenue that would be needed to prevent climate-change policies from harming low-income households and increasing poverty.

Introduction by Robert Greenstein

Comments by David Doniger of NRDC

Chad Stone on the Fiscal Impact of Climate Change

Martha Coven on the Effect of Climate Change on Low-Income Households

Questions and Answers Part 1

Questions and Answers Part 2