Combating Global Warming
5 Pages Posted: 1 Nov 2007
The favored federal policy to address climate change is a domestic cap-and-trade system. However, a vocal minority of political leaders have begun arguing in favor of a carbon tax. Carbon taxes seem particularly attractive both for fiscal reasons and because they provide certainty over the price of emissions. But permit systems can be designed to capture the potential advantages of carbon taxes.
Keywords: global warming, ian parry, william pizer, greenhouse emissions, taxation, environment, tax design, congress, CO2, carbon dioxide, fossil fuel prices, incentives, global temperature, fixed prices, hybrid permits, environmentalism
JEL Classification: H21, H51, I18, Q48, Q38
Suggested Citation: Suggested Citation