Tax All Carbon—Make Natural Gas the Bridge, Not End of Road

摘要

As Congress and the nation debate tax revenues and social expenditures in the context of the so-called fiscal cliff, there are compelling reasons for Congress to enact a carbon tax now. According to recent studies from researchers at the Massachusetts Institute of Technology and the Congressional Budget Office, a carbon tax starting in 2013 at $20 per ton and rising at 4 percent in real terms would generate $1.25 trillion in new revenues over 10 years that could offset other taxes, fund social programs (including energy research and development) or some combination of both. Enacting such a tax also would reduce greenhouse gas emissions and improve the competitive posture of carbon-free renewable sources of electric generation.