It's a tax refund, so you can spend it anywhere. They have it in place in Alaska, and it has bipartisan support.
https://grist.org/article/republicans-are-backing-a-carbon-dividend-what-the-heck-is-that/
For more details:
https://www.scientificamerican.com/article/carbon-dividends-a-win-win-for-people-and-for-the-climate/.
But it's basically just a revenue-neutral carbon fee, where all proceeds of the fee are refunded to taxpayers as a dividend. The point is to change the fact that pollution usually creates a cost only to others, which is inherently unfair (i.e., internalizes the negative externality, if you paid attention in Econ 101).
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