revenue recycling

Revenue recycling is an economic strategy where money generated from taxes or fees—such as carbon taxes—is collected by the government and then redistributed back into the economy. This can be done through mechanisms like reducing other taxes, funding public projects, or providing rebates to citizens. The goal is to make environmental policies more acceptable, minimize economic burdens, and encourage positive behaviors—like investing in clean energy—by ensuring that the generated revenue benefits the economy and society rather than just increasing government income.