A new carbon tax proposal and a big new carbon tax research report
Representative Carlos Curbelo (R-FL) introduced a carbon tax bill to the House last week (though it is “sure to fail” with the current government, it's unusual to see a carbon tax proposed by a Republican). According to Reuters popup: yes, “Curbelo said the tax would generate $700 billion in revenue over a decade for infrastructure investments.” A deep analysis popup: yes is available from The Center on Global Energy Policy at Columbia SIPA, which started up a Carbon Tax Initiative this year.
For a broader look at carbon taxes, earlier this month the Columbia initiative published a significant four-part series on the “economic, energy, and environmental implications of federal carbon taxes” (press release here popup: yes).
The overview covers impacts on energy sources:
“The effects of a carbon tax on prices are largest for energy produced by coal, followed by oil, then natural gas, due to the difference in carbon intensity of each fuel. Every additional dollar per ton of the carbon tax increases prices at the pump by slightly more than one cent per gallon for gasoline and slightly less than one cent per gallon for diesel.”
And examines a few possible revenue uses:
“How the carbon tax revenue is used is the major differentiating factor in distributional outcomes. A carbon tax policy can be progressive, regressive, or neither.”
Overview here popup: yes. Link popup: yes to report on energy and environmental implications; link to report popup: yes on distributional implications; link to report popup: yes on implications for the economy and household welfare.