Findings in a new Palumbo-Donahue School of Business study indicate that most Pennsylvanians would benefit from the implementation of the Energy Innovation and Carbon Dividend Act (EICDA), one of several federal bills being considered by Congress regarding regulations and prices on carbon dioxide emissions.

The revenue-neutral EICDA facilitates a market-driven implementation of clean energy technology to reduce pollution by placing a fee on the importers and producers of carbon-emitting fossil fuels, with heavy polluters paying higher fees. The revenues generated from the fees would then be returned to American citizens in the form of dividends.

Pennsylvania-specific key findings are as follows:

• An estimated 61% of all Pennsylvania households would experience a net financial benefit as a result of the dividend return within the first year (the greatest financial impact would be to low-income and family households, particularly in rural areas).
• Pennsylvania would benefit from the generation of an estimated 77,000 jobs by 2025 and 97,000 jobs by 2035.
• The EICDA would create clean energy jobs through incentivizing investment in energy innovation instead of polluting industries (these jobs are estimated to have a mean hourly wage 8-19% higher than the national average).

The study was conducted by a team of MBA Sustainable Business Practices graduate students, under the supervision of Dr. Robert Sroufe, our School’s leading expert in sustainability and holder of the Thomas J. and Marie C. Murrin Chair of Global Competitiveness.

A once-in-a-lifetime-opportunity

The team recently presented its findings to Pennsylvania delegates to the U.S. House of Representatives in Washington, D.C.  Congratulations to Allison Georgeson, Dana Palumbo, Brigid Mulholland, and Tierra Johnson on your well-deserved success!