There's a lot of buzz right now about the potential for "green" economic stimulus - policies and investments that grow the economy, create jobs, and protect the planet at the same time.
Investing in projects to repair and update our aging infrastructure would pay off in new jobs and a more efficient America. But where will the money come from? Stuck between pay-as-you-go rules and no new middle-class taxes, Congress doesn't have a lot of options.
One could be the auction of pollution allowances under a national greenhouse gas emissions cap. Estimates are that an auction could generate somewhere in the neighborhood of $150 billion per year.
As EDF President Fred Krupp explained October 28 on the National Journal blog,
...an emissions cap that includes an auction of pollution credits - a feature of many of the bills on Capitol Hill - could generate a substantial new source of revenue for easing the burden on taxpayers and putting more investment into transportation and electric infrastructure improvement as well as other important economic priorities.
This post is by Tony Kreindler, media director for the National Climate Campaign at Environmental Defense Fund.
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