Six proposals to put a price on carbon were introduced in the 113th Congress (2013-2014). Five would establish a carbon tax (also called a “carbon pollution fee”) and one would establish a cap-and-dividend program (a cap-and-trade program that would rebate …
This report examines the issues and options for designing a carbon tax in the United States. Reviewing the rationales for a carbon tax in the context of broader fiscal reform, it explores design issues, environmental benefits and the options for …
The Regional Greenhouse Gas Initiative (RGGI) was the first mandatory cap-and-trade program in the United States to limit carbon dioxide (CO2) from the power sector. It consists of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and …
Greenhouse gas emissions can be reduced most cost-effectively through market-based approaches that put a price on carbon. The two most commonly discussed approaches are a cap-and-trade system and a carbon tax. By establishing a price for greenhouse gas emissions, either …
Summary Used by governments for decades, market-based policies are mechanisms to control environmental pollution at various leverage points. They work by changing relative prices – raising the cost of emissions-intensive activities and/or lowering the cost of lower-emitting alternatives – to …
Summary Australia’s Clean Energy Future plan is a comprehensive set of national policies aimed at reducing greenhouse gas emissions and driving investments in clean energy. At its core is a carbon pricing mechanism starting in July 2012 and covering approximately …
Executive Summary A transition from conventional fossil fueled electricity generation to clean energy offers several benefits—particularly the growth of new clean energy industries and associated jobs, diversification of energy supply, and reductions in the public health and environmental damages (especially …
The Clean Development Mechanism (CDM), established under the Kyoto Protocol, is the primary international offset program in existence today, and while not perfect, it has helped to establish a global market for greenhouse gas (GHG) emission reductions. It generates offsets …
There is broad consensus among those engaged in climate policy analysis—from academia, government, NGOs, and industry—that any domestic climate policy should include, at its core, market-based policy instruments targeting greenhouse gas (GHGs) emissions, because no other approach can do the …