Using Taxes to Improve Cap and Trade: Efficient Pricing
5 Pages Posted: 4 Oct 2016 Last revised: 20 Jan 2017
Date Written: September 5, 2016
This essay analyzes how state-level cap-and-trade regimes can be improved by incorporating tax elements. This essay explains how tax elements could improve the efficiency of auction pricing, with a focus on evaluating California's cap-and-trade regime (AB 32).
Keywords: Cap and Trade, Tax, Global Warming, Carbon Tax, AB 32, Greenhouse Gas, Environmental Tax
JEL Classification: K34
Suggested Citation: Suggested Citation