carbon tax

Is 2025 the Year of the Carbon Tax?

Carbon border adjustment mechanisms are increasingly the talk of Washington. UCLA Law’s Kimberly Clausing explains some of the options on the table.

There’s a big, important tax debate looming next year—one with opportunities and risks for climate policy, particularly the idea of a carbon tax. It can be hard to see this debate thanks to the daily churn of the 2024 presidential election, but it’s there on the horizon if you squint. For one thing, we’ll likely …

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Are carbon taxes a thing of the past?

What is the role for carbon pricing in the future of decarbonization policy?

That’s the question implicitly raised by this article in the New York Times from late August.  The article surveys a range of criticisms of the use of carbon taxes as a tool to address greenhouse gas emissions, and criticisms of the focus of many economists on carbon taxes as the primary tool to address climate …

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Making Fossil Fuels Pay for Their Damage

A carbon tax doesn’t seem to be in the cards. Maybe a clean-up tax would fare better.

Production and combustion of fossil fuels imposes enormous costs on society, which the industry doesn’t pay for.  I want to talk about some options for using the tax system to change that.  One option, a tax on carbon dioxide emissions, gets the most attention but seems politically impossible.  The closest we’ve ever come to a …

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The Inflation Reduction Act and the Sequencing of Climate Policy

Why subsidies for clean energy generally are preconditions for other climate policies

The Inflation Reduction Act would be, if enacted, the biggest piece of climate legislation that the U.S. Congress has ever passed.  As such, it’s gotten a fair amount of coverage attempting to put it into context for the broader scope of climate policy in the U.S. and globally – in particular, this article in Slate …

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Making Climate Policy Work

New book highlights the weaknesses of carbon pricing in addressing climate policy

I have a new post up at JOTWELL reviewing a recent book from Danny Cullenward at the climate think-tank Carbon Plan, and Professor David Victor of UC San Diego.  Their book, Making Climate Policy Work, is a terrific overview of the political and administrative weaknesses of carbon pricing as a tool for climate policy.  Please …

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Taxing Carbon?

Should we adopt a corporate carbon tax? Something to think about on Tax Day.

Today is Tax Day, delayed from its usual spot in mid-April due a backlog at the IRS.  It seems like an apt time to think about a carbon tax.  At present, it doesn’t seem to be on Biden’s agenda, but agendas can change with circumstances, sometimes unpredictably. Politically, the biggest problem with a carbon tax …

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Bold But Realistic Climate Actions

Here’s what a new President could actually do.

What options are available to a new President taking office in 2021?  Let’s assume a favorable scenario for climate action in which Dems take unified control of the government (White House, Senate, House) in 2021.  What then? The first theme to keep in mind is that the Democrats will still be subject to some significant …

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Pricing Carbon: What Does It Actually Accomplish?

Pricing carbon may not work the way economists thought.

In theory, pricing carbon should incentivize emissions reductions.  In reality, it is unclear to what extent that takes place unless the carbon price is very high.  This is not to say that pricing carbon is useless, but the main benefits may take different forms. Basically, there are two ways of putting a price on carbon.  …

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What Do Dems Think about Climate Policy?

The candidates are united on some issues, but divided or equivocal on others.

Yesterday, the Washington Post published a survey of the Democratic candidates’ positions on climate change.  The differences between candidates probably don’t have a lot of immediate policy relevance, given the political and legal constraints on what a new president could accomplish. But they are very revealing about the direction of the Democratic Party today. The …

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Happy Tax Day!

It’s the perfect time to talk about a carbon tax.

Justice Oliver Wendell Holmes once said that taxes are the prices we pay for a civilized society.  A carbon tax, if we ever get one,  might turn out to be the price we pay for a sustainable planet.  I’m not wedded to it as a tool for cutting carbon, and I don’t think it would …

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