carbon dividend

A carbon dividend is a financial return provided to individuals or households from a carbon pricing system, such as a carbon tax or cap-and-trade program. The idea is that by putting a price on carbon emissions, businesses and consumers will be encouraged to reduce their carbon footprint. The revenue generated from this pricing can then be redistributed, often equally, to citizens, helping to offset any increased costs from energy prices. This creates an economic incentive for reducing emissions while supporting individuals financially in the transition to a cleaner environment.