Supporting low-income families is crucial for the well-being of our economy and society. Many workers — such as clerks, receptionists, waiters and waitresses, teacher aides, auto mechanics, custodians, home care workers, short-order cooks, laborers, health aides and delivery workers — are essential for the functioning of our society, yet they earn less than Hawaii’s median income.

According to Aloha United Way, 44% of Hawaii’s families do not earn enough income to cover all their basic needs and often have to make difficult choices, such as cutting back on food and medical care.

Efforts are being made to improve the lives of low-income families in Hawaii. A refundable food/excise tax credit has been created, and the minimum wage has been recently increased. However, more legislative action is needed. Efforts are also being made to eliminate the general excise tax on food and prescription drugs and to provide child care to families.

One relevant program, which has gone relatively unnoticed, is carbon cashback. A University of Hawaii study found that this program would result in a net financial benefit of $900 per year for the average family in the lowest income quintile, and most families would see some benefits.

Unlike many programs that support low-income families, carbon cashback makes use of existing government programs and would be revenue neutral. Furthermore, the program would benefit the environment by reducing greenhouse gas emissions.

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Carbon cashback would work by taxing the fossil fuel industry, which is largely responsible for climate change and air pollution. The burning of fossil fuels releases greenhouse gases, which are warming the planet. This program would tax companies that import fossil fuels to Hawaii. Unlike today’s gasoline tax, the revenues from carbon cashback would be returned to people in equal shares as a rebate in the form of a refundable tax credit.

Everyone would be eligible for the rebate, and those with low incomes would receive the same rebate as those with high incomes. This makes the program progressive, as lower-income families will experience a much larger net gain than higher-income families since they use less fossil fuel.

Carbon cashback employs economic theory to reduce greenhouse gas emissions. Since fossil fuel importers are likely to pass most of the carbon tax to consumers, the higher prices will be a disincentive for households and businesses to consume fossil fuels. As a result, people will look for ways to reduce their consumption, leading to lower greenhouse gas emissions.

Companies will, likewise, adopt and create lower-emitting products and solutions. The UH study estimates that carbon cashback would reduce Hawaii’s emissions by 10%. That is equivalent to taking more than 300,000 gasoline-powered cars off the road.

Such a program would raise the income of families that are living paycheck to paycheck and struggling just to get by. It will do so without additional government spending as it takes advantage of existing government programs to minimize administrative costs.

Overall, helping low-income families is essential for the well-being of our economy and society. Carbon cashback is a progressive and environmentally friendly program that would help these families achieve economic stability — and critically, will help Hawaii reduce its global warming emissions.

This proposed program, which has been introduced as Senate Bill 1004 and SB 1060, is a win for our economy, people and the environment.

Matthew Geyer is a founding member of Hawaii Environmental Change Agents; Helen Cox chairs the Kauai Climate Action Coalition and is co-lead of the Kauai chapter of the Citizens Climate Lobby.