carbon tax

More 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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Put 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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Natural 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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New 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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Two 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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The 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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Putting 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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Using 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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Obama’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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When Do Economic Incentives Modify Behavior?

The Journal of Economic Perpspectives ought to be on any environmental law professor’s reading list — or really, anyone interested in environmental policy.  Thanks in no small part to the editorial wizardry of Managing Editor Timothy Taylor, it performs its mission — to “fill a  gap between the general interest press and most other academic …

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