A national tax on carbon dioxide (CO2) emissions is a cost-effective and efficient tool to achieve environmentally beneficial emissions reductions that will generate billions of dollars per year in revenue for the US government. These carbon revenues can serve a range of purposes. They can pay for energy efficiency investments; they can finance cuts in […]
Whether you’re designing a carbon tax or experimenting with a cap-and-trade policy, carbon pricing affects all participants differently. Potential inequality under a carbon tax has been a particular concern for energy-intensive, trade-exposed (EITE) sectors, whose energy-heavy processes and competitive global markets make them particularly vulnerable to carbon pricing disparities across countries. Politicians acting in the […]
California’s cap-and-trade program for greenhouse gas emissions took effect in January 2013, and as the period of enforcement unfolds, both regulated entities and the California Air Resources Board (which is responsible for the implementation and management of the program) are considering how best to manage costs within the system. Several cost containment measures are outlined […]
The new CAFE standards may require complementary policies to meet the ambitious goals of reducing fuel consumption and greenhouse gas emissions. In a new RFF discussion paper, I examine the new footprint standards, their implications for changes to the size mix of vehicles, and the role of credit policies on compliance and cost-effectiveness of the […]
Tax exemptions, industry rebates, and border tax adjustments can help protect the competitiveness of industries affected by a carbon tax, but they are not equally efficient at achieving economic and environmental goals. In the latest issue of Resources, Richard Morgenstern, Nathan Richardson, and I examine the issues. Read more here.
Carbon pricing remains the strongest option for reducing greenhouse gas emissions and mitigating climate change. But such a policy still faces serious political hurdles in part because of the perception that a carbon tax would most negatively impact the poor. Clayton Munnings and I address the potential of a carbon tax to actually be progressive […]
New research explores lessons learned to date from carbon markets around the world and presents new issues to be examined in the future, such as the linking of existing markets. Click here to read the feature in its entirety.
The first allowance auction for California’s carbon cap-and-trade program is set for today. This will be the first economy-wide carbon allowance auction in the US, and is the product of a long policy (and legal) process. California’s carbon market will be the world’s second-largest (after the EU ETS). RFF’s Dallas Burtraw participated in the program’s […]
This post originally appeared on Robert Stavins’s blog, An Economic View of the Environment. The recent demise of serious political consideration of an economy-wide U.S. CO2 cap-and-trade system and the even more recent resurgence in interest among policy wonks in a U.S. carbon tax should prompt reflection on where we’ve been, where we are, and […]
One hopes the market for intellectual thought is not like the market for comedy, where the retelling of highlights exhausts the creative resource. Nobel Laureate Joe Stiglitz has been a tremendously creative thinker over his career, and his lecture at Resources for the Future on October 5 offered intellectual highlights that deserve reflection and bear retelling. […]