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Distributional Effects of Reducing Carbon Dioxide Emissions With a Carbon Tax: Working Paper 2021-11

Dorian Carloni and Terry Dinan

No 57399, Working Papers from Congressional Budget Office

Abstract: Putting a price on emissions of carbon dioxide, either by taxing them or by establishing a cap- and-trade program, is one policy that lawmakers could consider to address climate change. Although such a policy could encourage cost-effective reductions in emissions throughout the economy, lawmakers have expressed concern about whether it would disproportionately affect lower-income households. Determining the distributional effects—that is, the effects on households at different income levels—of a policy that would price carbon emissions (referred to in

JEL-codes: H00 H20 H23 (search for similar items in EconPapers)
Date: 2021-09-13
New Economics Papers: this item is included in nep-ene, nep-env and nep-isf
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