Robert Costanza, Joshua Farley, What Should Be Done With the Revenues From a Carbon-Cap-and-Auction System?, The Solutions Journal, Volume 1, Issue 1, January 2010, Pages 33 (https://www.thesolutionsjournal.com/article/what-should-be-done-with-the-revenues-from-a-carbon-cap-and-auction-system/) Abstract: Here are three reasons why an atmospheric trust should use a significant fraction of the revenues (net of administrative costs) for purposes related directly to “enhancing the asset” rather than pay out as current dividends: 1. What are “dividends” in this case? Dividends imply the net proceeds produced by the capital after subtracting all transaction and other costs. Dividends should be paid from net profits without touching the capital asset. In order to maintain the atmospheric asset, humans need to cut emissions drastically and that will require both the development and deployment of low carbon technologies at a very rapid rate. Can we expect private markets to do this alone, even with the price signals adjusted by the carbon auction price? If research and development is left up to the private sector, new technologies will be patented. Patents are simply legal monopolies, and monopoly prices will ration use of new technologies to those who can afford them. Since … Topics: Climate Change; Economy; Governance