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

Parry, Ian W. H. and Pizer, William A., Combating Global Warming. Regulation, Vol. 30, No. 3, Fall 2007, Available at SSRN:

Ian W. H. Parry (Contact Author)

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States
202-328-5151 (Phone)
202-939-3460 (Fax)


William A. Pizer

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

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