Economic growth and carbon taxes

Deficit reduction and carbon taxes: Budgetary, economic, and distributional impacts / Jared Carbone, Richard D. Morgenstern, Roberton C. Williams III, Dallas Burtraw. Resources for the Future, Aug. 2013, 30 p.  (RFF report)

http://www.rff.org/RFF/Documents/RFF-Rpt-Carbone.etal.CarbonTaxes.pdf

Executive summary :

This report looks at both the efficiency and distributional implications of introducing carbon dioxide (CO2) taxes, either as part of revenue-neutral tax reform or as one of a series of measures to address the long-term budget deficit. It uses a newly developed dynamic general-equilibrium, overlapping-generations model of the US economy, combined with a more disaggregated model of near-term distributional impacts…

—> A ce propos :

Economic growth and carbon taxes / Raymond J. Kopp, Common Resources, 6/09/2013 http://common-resources.org/2013/economic-growth-and-carbon-taxes/

I believe it’s time to end the discussion of the impact a carbon tax would have on US economic growth. To me the question is settled – it has no substantive impact. A new study by scholars at RFF shows that a substantial, broad-based, revenue-neutral tax on carbon dioxide emissions would have imperceptible effects on macroeconomic growth as measured by GDP. This is the same result as that reported by scholars at MIT in 2012 using an entirely different model of the US economy, and the same result reported earlier this year by scholars at the Brookings Institution using yet another model of the US economy…


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