Resources for the Future Discussion Paper 16-24
33 Pages Posted: 12 Oct 2016
Date Written: June 15, 2016
This paper examines potential environmental tax policy reforms. It focuses primarily on a carbon tax, but also more briefly considers a range of other possible changes. These include revising or eliminating various energy and environmental tax credits and deductions (many of which might become unnecessary in the presence of a carbon tax), as well as changes to energy taxes that have substantial environmental implications (such as the federal gasoline tax). The paper draws on recent theoretical and empirical research to evaluate the effects of such reforms on tax revenue, pollution emissions, economic efficiency, and income distribution.
Keywords: environmental tax, green tax, carbon tax, gasoline tax, emissions pricing
JEL Classification: Q58, H23, H21, H22, Q50
Suggested Citation: Suggested Citation