Carbon Cash Back: A Green UBI for a Decarbonized Future

by Lily Skopp

Click here for a PDF file of this article

Abstract

This Note supports a framework for climate governance that transforms

carbon tax revenues into equal per‑capita cash distributions for all United States

residents: a green universal basic income (UBI). It examines how the institutional

structure of the Alaska Permanent Fund Dividend (PFD) can guide the design

of a federal resource‑based dividend. By combining economic analyses of

efficiency and distribution with legal scholarship on political salience and

administrative design, the Note uses Alaska's PFD as an empirical case study to

connect two often separate literatures. The Note introduces the PFD's key

features—universality, independent fund management, and a narrative of

collective resource ownership—and evaluates how those features can inform the

design of a federal carbon-dividend system. Although the proposed framework

may not represent the theoretically most efficient pathway to decarbonization, it

prioritizes political viability and institutional resilience in a fragmented

governance environment. In doing so, the Note offers a practical approach for

transforming carbon pricing from a politically vulnerable tax into a durable

public institution.

Carbon Cash Back: A Green UBI for a Decarbonized Future

by Lily Skopp

Click here for a PDF file of this article

Abstract

This Note supports a framework for climate governance that transforms

carbon tax revenues into equal per‑capita cash distributions for all United States

residents: a green universal basic income (UBI). It examines how the institutional

structure of the Alaska Permanent Fund Dividend (PFD) can guide the design

of a federal resource‑based dividend. By combining economic analyses of

efficiency and distribution with legal scholarship on political salience and

administrative design, the Note uses Alaska's PFD as an empirical case study to

connect two often separate literatures. The Note introduces the PFD's key

features—universality, independent fund management, and a narrative of

collective resource ownership—and evaluates how those features can inform the

design of a federal carbon-dividend system. Although the proposed framework

may not represent the theoretically most efficient pathway to decarbonization, it

prioritizes political viability and institutional resilience in a fragmented

governance environment. In doing so, the Note offers a practical approach for

transforming carbon pricing from a politically vulnerable tax into a durable

public institution.