A Practical Tax Policy to Fight Climate Change: The Utility Savings Account (USA)

In A Practical Tax Policy to Fight Climate Change: The Utility Savings Account (USA) (Wiley Climate & Energy Journal, May 2021) the authors propose a modification to the IRS tax code to reward working class Americans to budget, plan, and pay for energy services. The reward is in the form of a pre-tax income benefit much like a health savings account (HSA), commuter benefit, and other popular and widely adopted employer-sponsored benefits. The tax modification introduces swift new behaviors toward energy use and energy-related purchasing decisions as society aims to achieve aggressive carbon reduction goals. Energy providers will reach new markets and spur innovations in energy investment; and federal and state governments can achieve carbon reduction goals while capitalizing on the acceleration of revenue from public and private investments. Influencing behaviors through tax policy  empowers Americans to make better purchasing and investment decisions, toward a cleaner energy economy and energy efficient future for future generation.