Using Taxes to Improve Cap and Trade, Part I: Distribution
5 Pages Posted: 20 Mar 2015 Last revised: 18 Apr 2015
Date Written: January 12, 2015
In this article, the first of a series, we analyze the distributional issues involved in implementing U.S. state level cap-and-trade regimes. Specifically, we will argue that the structure of California’s AB 32 regime will unnecessarily disadvantage lower-income Californians under the announced plan to give away approximately half of the permits to businesses and pollution-emitting entities.
Keywords: cap and trade, carbon tax, state tax, AB 32, California tax
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