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

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  • Dorian Carloni
  • Terry Dinan

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 this

Suggested Citation

  • Dorian Carloni & Terry Dinan, 2021. "Distributional Effects of Reducing Carbon Dioxide Emissions With a Carbon Tax: Working Paper 2021-11," Working Papers 57399, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:57399
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    File URL: https://www.cbo.gov/system/files/2021-09/57399-carbon-tax.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • H00 - Public Economics - - General - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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