IDEAS home Printed from https://ideas.repec.org/p/cbo/wpaper/43713.html

Offsetting a Carbon Tax’s Costs on Low-Income Households: Working Paper 2012-16

Author

Listed:
  • Terry Dinan

Abstract

Imposing a tax on carbon dioxide emissions would reduce the damage from climate change but would also impose a larger burden, relative to income, on low-income households than on high-income households. This paper evaluates two broad groupings of options for reducing the regressive effects of a carbon tax; one group of options would affect large segments of the economy, for example by reducing payroll taxes, and the other group of options would be targeted at low-income households, for example by providing an additional payment to households currently receiving electronic

Suggested Citation

  • Terry Dinan, 2012. "Offsetting a Carbon Tax’s Costs on Low-Income Households: Working Paper 2012-16," Working Papers 43713, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:43713
    as

    Download full text from publisher

    File URL: https://www.cbo.gov/sites/default/files/112th-congress-2011-2012/workingpaper/11-13LowIncomeOptions_0.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nada Eissa & Hilary W. Hoynes, 2006. "Behavioral Responses to Taxes: Lessons from the EITC and Labor Supply," NBER Chapters, in: Tax Policy and the Economy, Volume 20, pages 73-110, National Bureau of Economic Research, Inc.
    2. repec:aen:journl:2009v30-02-a08 is not listed on IDEAS
    3. Don Fullerton, 2011. "Six Distributional Effects of Environmental Policy," Risk Analysis, John Wiley & Sons, vol. 31(6), pages 923-929, June.
    4. Ian W.H. Parry & Antonio M. Bento, 2002. "Tax Deductions, Environmental Policy, and the "Double Dividend" Hypothesis," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 22, pages 397-426, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Beck, Marisa & Rivers, Nicholas & Yonezawa, Hidemichi, 2016. "A rural myth? Sources and implications of the perceived unfairness of carbon taxes in rural communities," Ecological Economics, Elsevier, vol. 124(C), pages 124-134.
    2. Z. Eylem Gevrek & Ayse Uyduranoglu, 2015. "Public Preferences for Carbon Tax Attributes," Working Paper Series of the Department of Economics, University of Konstanz 2015-15, Department of Economics, University of Konstanz.
    3. Mathur, Aparna & Morris, Adele C., 2014. "Distributional effects of a carbon tax in broader U.S. fiscal reform," Energy Policy, Elsevier, vol. 66(C), pages 326-334.
    4. Thoyre, Autumn, 2015. "Energy efficiency as a resource in state portfolio standards: Lessons for more expansive policies," Energy Policy, Elsevier, vol. 86(C), pages 625-634.
    5. Gevrek, Z.Eylem & Uyduranoglu, Ayse, 2015. "Public preferences for carbon tax attributes," Ecological Economics, Elsevier, vol. 118(C), pages 186-197.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. William A Pizer & Steven Sexton, 2019. "The Distributional Impacts of Energy Taxes," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(1), pages 104-123.
    2. Claudio A. Agostini & Marcela Perticara & Javiera Selman, 2023. "Tackling Vulnerable Households through a Working Tax Credit Scheme: A Feasible Alternative to Cash Transfers," Hacienda Pública Española / Review of Public Economics, IEF, vol. 245(2), pages 119-155, June.
    3. Ian Parry & Victor Mylonas, 2018. "Canada's Carbon Price Floor," CESifo Working Paper Series 6959, CESifo.
    4. Marianne P. Bitler & Hilary W. Hoynes, 2010. "The State of Social Safety Net in the Post-Welfare Reform Era," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 41(2 (Fall)), pages 71-147.
    5. East, Chloe N. & Kuka, Elira, 2015. "Reexamining the consumption smoothing benefits of Unemployment Insurance," Journal of Public Economics, Elsevier, vol. 132(C), pages 32-50.
    6. repec:spo:wpmain:info:hdl:2441/1203 is not listed on IDEAS
    7. Hélène Périvier, 2007. "Les femmes sur le marché du travail aux Etats-Unis: une mise en perspective avec la France et la Suède," Sciences Po Economics Publications (main) hal-00972845, HAL.
    8. Cockx, Bart & Robin, Stéphane R. & Goebel, Christian, 2006. "Income Support Policies for Part-Time Workers: A Stepping-Stone to Regular Jobs? An Application to Young Long-Term Unemployed Women in Belgium," IZA Discussion Papers 2432, IZA Network @ LISER.
    9. Sanstad, Alan H. & DeCanio, Stephen J. & Boyd, Gale A. & Koomey, Jonathan G., 2001. "Estimating bounds on the economy-wide effects of the CEF policy scenarios," Energy Policy, Elsevier, vol. 29(14), pages 1299-1311, November.
    10. Hallegatte, Stephane & Bangalore, Mook & Bonzanigo, Laura & Fay, Marianne & Narloch, Ulf & Rozenberg, Julie & Vogt-Schilb, Adrien, 2014. "Climate change and poverty -- an analytical framework," Policy Research Working Paper Series 7126, The World Bank.
    11. Charles Ballard & John Goddeeris & Sang-Kyum Kim, 2005. "Non-Homothetic Preferences and the Non-Environmental Effects of Environmental Taxes," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(2), pages 115-130, March.
    12. Tzu-Ting Yang, 2016. "Family Labor Supply and the Timing of Cash Transfers: Evidence from the Earned Income Tax Credit," IEAS Working Paper : academic research 16-A012, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    13. Parry Ian W. H. & West Sarah E & Laxminarayan Ramanan, 2009. "Fiscal and Externality Rationales for Alcohol Policies," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-48, July.
    14. Kotamäki Mauri, 2016. "Participation Tax Rates in Finland, Earnedincome Tax Credit Investigated," Discussion Papers 107, Aboa Centre for Economics.
    15. Pankaj C. Patel & Cornelius A. Rietveld & Jack I. Richter, 2022. "The relation between public assistance and self-employment in census tracts: a long-term perspective," Journal of Evolutionary Economics, Springer, vol. 32(3), pages 891-927, July.
    16. Goulder, Lawrence H., 2002. "Mitigating the Adverse Impacts of CO2 Abatement Policies on Energy-Intensive Industries," Discussion Papers 10642, Resources for the Future.
    17. repec:aen:journl:ej35-si1-07 is not listed on IDEAS
    18. Haan, Peter & Simmler, Martin, 2018. "Wind electricity subsidies — A windfall for landowners? Evidence from a feed-in tariff in Germany," Journal of Public Economics, Elsevier, vol. 159(C), pages 16-32.
    19. Parry, Ian W.H., 2002. "Adjusting Carbon Cost Analyses to Account for Prior Tax Distortions," Discussion Papers 10481, Resources for the Future.
    20. Otto Lenhart, 2023. "The earned income tax credit and food insecurity," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(5), pages 1543-1570, October.
    21. Francesco Vona, 2023. "Skills and human capital for the low-carbon transition in developing and emerging economies," Working Papers 2023.19, Fondazione Eni Enrico Mattei.
    22. West, Sara E. & Parry, Ian W.H., 2009. "Alcohol-Leisure Complementarity: Empirical Estimates and Implications for Tax Policy," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(4), pages 611-633, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbo:wpaper:43713. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cbogvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.