The Green Dividend Dilemma: Carbon Dividends Versus Double-Dividends

Stephie Fried, Kevin Novan and William Peterman

No 2019-03-08, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: By raising the price of carbon-emitting energy sources, a carbon tax would flexibly incentivize households and businesses to reduce fossil fuel consumption and substitute towards cleaner energy sources. A carbon tax would also generate a substantial stream of government revenue. This raises an important question – how should this revenue be used? In this note, we summarize findings from our recent research (Fried et al. (2018)) that examine this question.

Date: 2019-03-08
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2019-03-08

DOI: 10.17016/2380-7172.2340

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