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Expert Insight

After Two Defeats in Washington State, Where Next For A Carbon Tax?

Author(s): Ed Dolan
Senior Fellow
Niskanen Center
Date: November 26, 2018 at 10:04 AM

Conservative and progressive policy wonks agree: a carbon tax is the most promising of all tools to fight climate change. Such a tax would spur investments in green energy and encourage motorists to buy more electric cars. It would minimize the role of regulatory bureaucrats and maximize that of markets. What is not to love about a carbon tax? The sticking point is what to do with the billions of dollars of revenues such a tax would generate. Conservatives favor using the money for a revenue-neutral tax swap. Lower taxes on capital would encourage investment, lower payroll taxes would encourage… [more]

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