Implementing a US Carbon Tax: Challenges and Debates
Books, March 1, 2015
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- Implementing a US Carbon Tax: Challenges and Debates
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Bibliographic details
- Published: March 1, 2015
- Series: Books
- DOI: https://doi.org/10.5089/9781138825369.071
Overview and main conclusions
- Reducing emissions now makes sense despite uncertainty about the future extent and effects of global climate change because the expected damages are not zero and risks of serious environmental and macroeconomic consequences rise with increasing atmospheric greenhouse gas concentrations.
- A carbon tax is described as the simplest, most effective, and least costly way to reduce emissions.
- A carbon tax would provide substantial new revenues, which may be badly needed given historically high debt-to-GDP levels, pressures on social security and medical budgets, and calls to reform taxes on personal and corporate income.
- The volume shows that a carbon tax can work in the United States by laying out sound design principles, opportunities for broader policy reforms, and feasible solutions to specific implementation challenges.
Scope and structure of the volume
- Consists of thirteen chapters, written by leading experts.
- Covers the full range of issues policymakers would need to understand, including:
- The revenue potential of a carbon tax.
- How the tax can be administered.
- The advantages of carbon taxes over other mitigation instruments.
- The environmental and macroeconomic impacts of the tax.
Key policy-relevant findings and implications
- Emissions mitigation:
- A carbon tax is identified as an effective instrument to reduce greenhouse gas emissions relative to alternatives.
- Fiscal implications:
- A carbon tax would generate substantial new revenues that could help address:
- Historically high debt-to-GDP levels.
- Pressures on social security and medical budgets.
- Calls to reform taxes on personal and corporate income.
- Implementation feasibility:
- Practicalities of introducing a carbon tax in the United States are solvable through sound design principles and feasible implementation solutions detailed across the chapters.
Audience and use
- Targeted to policymakers and analysts focused on climate policy, fiscal policy, and tax reform.
- Relevant subject areas listed: Carbon tax, Corporate income tax, Corporate taxes, Environment, Greenhouse gas emissions, National accounts, Personal income, Taxes.