Working Paper: NBER ID: w22303
Authors: Roberton C. Williams III
Abstract: 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 Taxation; Carbon Tax; Tax Policy Reforms
JEL Codes: H21; H22; H23; Q50; Q58
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Carbon tax (H23) | reduction in greenhouse gas emissions (Q54) |
| Environmental taxes (H23) | incentives to lower pollution emissions (Q52) |
| Revenue from carbon tax (H23) | financing tax cuts or public goods (H40) |
| Carbon tax (H23) | more efficient overall tax system (H21) |
| Reduction in reliance on distortionary taxes (H31) | improved overall economic performance (P17) |