NewEnergyNews: Study Shows A Carbon Tax Can Work

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    Thursday, April 19, 2018

    Study Shows A Carbon Tax Can Work

    Carbon Taxes Could Make Significant Dent in Climate Change, Study Finds; Several different carbon-pricing approaches would help reduce emissions, and some would be fair as well, researchers report.

    David L. Chandler, April 18, 2018 (MIT News via The Energy Collective)

    “…[Depending on the exact mechanism chosen, a carbon tax] can be fair and not hurt low-income households…[A new study from MIT and the National Renewable Energy Laboratory] considered two different starting values ($25 and $50 per ton of carbon emissions produced), and two different rates of increase (1 percent or 5 percent per year), as well as three different approaches to dispensing the revenue: an equal rebate to every household, a tax break for individuals, or a corporate tax break…[T]he highest starting value and the highest rate of increase produced the greatest emissions reductions…[But] even the lowest taxation rates could in themselves lead to reductions sufficient to meet the U.S. near-term commitment under the 2015 Paris Agreement on climate change…[T]he most efficient way of achieving those reductions, in terms of overall impact on the economy, is to use the revenue to reduce taxes on capital — corporate profits or investment income…[T]he option of sending equal payments to everyone was found to be the least efficient for the overall economy, but also the least regressive…Individual tax breaks came in somewhere in between…” click here for more

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