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How Is the US Pricing Carbon? How Could We Price Carbon?

Joseph Aldy, Dallas Burtraw, Carolyn Fischer, Meredith Fowlie, Roberton Williams and Maureen Cropper

No 30545, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Economists have for decades recommended that carbon dioxide and other greenhouse gases be taxed—or otherwise priced—to provide incentives for their reduction. The United States does not have a federal carbon tax; however, many state and federal programs to reduce carbon emissions effectively price carbon—for example, through cap-and-trade systems or regulations. There are also programs that subsidize reductions in carbon emissions. At the 2022 meetings of the American Economic Association, the Society for Benefit-Cost Analysis brought together five well-known economists—Joe Aldy, Dallas Burtraw, Carolyn Fischer, Meredith Fowlie, and Rob Williams—to discuss how the United States does, in fact, price carbon and how it could price carbon. Maureen Cropper chaired the panel. This paper summarizes their remarks.

JEL-codes: H23 Q54 Q58 (search for similar items in EconPapers)
Date: 2022-10
New Economics Papers: this item is included in nep-ene and nep-env
Note: EEE
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Published as Aldy, Joseph E. & Burtraw, Dallas & Fischer, Carolyn & Fowlie, Meredith & Williams, Roberton C. & Cropper, Maureen L., 2022. "How is the U.S. Pricing Carbon? How Could We Price Carbon?," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 13(3), pages 310-334, October.

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