Archive for November 19th, 2012
In recent weeks, various policy players have been discussing the possibility of implementing a carbon tax in the U.S., that is, a pricing regime designed to increase the cost of fossil fuel usage and bring badly needed revenues to close the nation’s budget.
On Nov. 13, the Brookings Institution released a report entitled “Institute a Modest Carbon Tax to Reduce Carbon Emissions, Finance Clean Energy Technology Development, Cut Taxes and Reduce the Deficit,” recommending imposing a levy on carbon dioxide emissions starting at $20 per ton and raising it by 4 percent per year.
Such a tax would raise an average $150 billion a year over a 10-year period, while reducing carbon dioxide emissions 14 percent below 2006 levels by 2020 and 20 percent below 2006 levels by 2050, according to the organization. Brookings recommends investing the funds in clean energy and energy efficiency initiatives, along with tax cuts, deficit reduction and rebates to low-income households. Read the rest of this entry »