carbon tax
Sanders/Boxer carbon tax
Sens. Bernie Sanders and Barbara Boxer released today a pair of bills meant to increase the price of carbon in the United States. (Bill summary; carbon tax bill; fuel subsidies bill) The “Climate Protection Act of 2013” would impose a fee of $20 per ton (carbon or methane equivalent) on coal, petroleum, natural gas and …
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CONTINUE READINGMore About the Distributional Impacts of a Carbon Tax
I’ve posted before about the equity effects of pricing carbon. A new paper from Brookings provides further evidence on the subject. The main conclusions are that a carbon tax is indeed regressive, but the problem could be fixed by spending about 10% of the proceeds on social welfare programs. The authors find that the direct …
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CONTINUE READINGPut That In Your Tank and Smoke It
The next time anyone tells you that an increase in gasoline prices (say, as part of a carbon-tax or a cap-and-trade system) would generate unbearable costs to consumers, think again. The Los Angeles Times reports something that I have often seen but never really thought through: gasoline stations often a couple block away from each …
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CONTINUE READINGNatural Gas Fracking: Don’t Worry, Be Happy!
When George Washington Law School’s Richard Pierce talks about energy, I listen. And a few days ago he posted a short piece with the provocative title, “Natural Gas Fracking Addresses All Of Our Major Problems.” (emphasis in original!). If you want to read the nutshell case for why fracking is good, then this is your …
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CONTINUE READINGNew Climate Denial Talking Point!
Or at least one that I’ve never heard before. On Friday night, I was lucky enough to be the “left” in a local version of NPR’s “Left, Right, and Center” with Matt Miller. We did it at my local synagogue, where Miller (and I) are members. The “right” was my old friend Larry Greenfield, who …
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CONTINUE READINGTwo Cheers for a Hybrid Sales + Carbon Tax
Dan’s thoughtful post on the Hybrid Sales + Carbon Tax is worth careful consideration. My initial thought is that Dan underestimates it one way, but might overestimate it in two ways. I think he underestimates its political viability. He argues that “voters don’t like taxes, and sales taxes are especially easy for them to notice …
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CONTINUE READINGThe Possible Merits of a Hybrid Sales+Carbon Tax
There’s been a lot of discussion of carbon taxes, which economists virtually all love. Proposed carbon taxes would generally be imposed at the level of fossil-fuel sellers or importers, or when producers use carbon. Imposing the carbon tax on consumers would have some significant advantages. This could be done with some fancy VAT-type mechanism, but …
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CONTINUE READINGPutting a Cap on the Green Paradox
The Green Paradox holds that emission control measures scheduled for the future can backfire. Foreseeing a smaller market in the future, fossil fuel sellers decide to unload more of their reserves now by cutting prices. A recent report from Resources for the Future provides more details if you’re interested (though the details don’t matter for …
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CONTINUE READINGUsing a Carbon Tax to Decrease the Deficit
A carbon tax would provide an incentive to reduce the use of fossil fuels, fostering the growth of clean energy. But it would have another benefit as well: providing revenue to help cut the deficit. Much the same effect could be produced by auctioning allowances within a cap-and-trade system. According to Resources for the Future, …
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CONTINUE READINGObama’s Dormant Carbon Tax
In many respects, public subsidies for clean technology research and development, public investment in urban redevelopment, and elaborate cap-and-trade programs are all essentially clunky political substitutes for a carbon tax. If we priced carbon accurately to reflect its true cost to society, in terms of public and environmental health impacts (aka “externalities”), much of this …
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