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How is the U.S. Pricing Carbon? How Could We Price Carbon?

  • Joseph E. Aldy
  • , Dallas Burtraw
  • , Carolyn Fischer
  • , Meredith Fowlie
  • , Roberton C. Williams
  • , Maureen L. Cropper*
  • *Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

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 USA 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 USA does, in fact, price carbon and how it could price carbon. Maureen Cropper chaired the panel. This paper summarizes their remarks.

Original languageEnglish
Pages (from-to)310-334
Number of pages25
JournalJournal of Benefit-Cost Analysis
Volume13
Issue number3
Early online date22 Nov 2022
DOIs
Publication statusPublished - Nov 2022

Bibliographical note

Publisher Copyright:
© 2022 The Author(s).

Funding

Coauthor Aldy’s research was supported by the Belfer Center for Science and International Affairs, BP, Environmental Defense Fund, Harvard University Center for the Environment, and Roy Family Fund. 1

Keywords

  • carbon pricing
  • incentives to reduce carbon emissions
  • US climate policies

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