Full Title: A Carbon Tax to Combat Climate Change and Support Low-Income Households
Author(s): Christopher Knittel
Publisher(s): Day One Project
Publication Date: January 16, 2021
Full Text: Download Resource
Description (excerpt):
Putting a price on carbon is fundamental to achieving U.S. climate goals for 2050. Many options for carbon price-setting exist, and in this policy brief we propose a tax-and-dividend approach that mitigates the challenging impacts that carbon policies have on poor and suburban/rural communities, particularly those in Middle America. Such a plan will be a net gain for low-income households, in contrast to other proposed climate change policies which will adversely affect the poor. Furthermore, it has been shown that even a modest carbon tax can have large benefits in terms of cost-effectiveness.