Writing in the New York Times, CGEP Director Jason Bordoff argues that the damage done by the Trump administration’s reversal of Mr. Obama’s climate policies is less a sharp rise in carbon emissions than it is the loss of American leadership and missed opportunity to save future generations from climate change’s severe impacts.
This report summarizes collaborations between CGEP and three organizations: Rhodium Group, the Urban-Brookings Tax Policy Center (TPC), and Rice University’s Baker Institute for Public Policy. Using state-of-the-art modeling tools, we provide an up-to-date (e.g., inclusive of 2017 federal tax reform) view of likely outcomes if a federal carbon tax is implemented in the United States, over what we assume to be the first decade of policy implementation (the 2020s).
This paper, conducted in partnership with the Rhodium Group, seeks to answer key questions about the impacts of a carbon tax in the United States. First, how responsive are different sectors of the US economy to a carbon tax at different tax rates? Second, what changes in energy prices, production, and consumption occur under different tax rates?