Why will energy fees work?
Why will energy fees work?
If implemented, this plan would quickly address America’s Energy Crisis, while not overburdening the economy, consumers, or the poor.  Here’s why:
 
1.    A clear financial incentive would exist to switch to clean and safe energy sources, or to become more energy efficient.  Doing so would mean paying less in energy fees for both individuals and corporations.
2.    Market forces would be free to do their work: currently, there are hidden costs to most energy sources (they fund terrorists or harm the environment) that are not paid directly by consumers.  This effectively breaks the free market model because the true cost of energy is not reflected in its price. Security and carbon fees would fix this problem by increasing the cost of dangerous or dirty fuels to reflect their costs to society, not only their costs to extract and deliver.
3.    Clean energy use would be a competitive advantage: companies would pay more for their energy usage but would not receive a refund, requiring them to increase the price of high-energy goods and services.  In order to offer the greatest value to consumers and shareholders, though, they would have a big incentive to become more energy efficient and to switch to clean and safe technologies.  Doing so would mean paying less in energy fees, giving them a competitive advantage in the marketplace.
4.    The  most vulnerable would fare well because the poor typically use the least energy.  Other plans that favor particular technologies or simply tax energy would adversely affect the poor because a higher proportion of the poor’s income is used for energy.  With Fair Price Energy, though, they would likely receive more dollars back in their fee refund than they would pay in fees.  And yet, the new fees on dirty or dangerous energy sources would still encourage them to use less of these fuels.
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