Conservative Carbon taxes main points
- Gradually increasing carbon tax starting at $40 per ton of carbon emissions
- Return proceeds of tax to Americans to offset higher electricity costs
- Provide rebates for exporting US companies to remain competitive in global market
- Reduce regulations and let the new market incentive do the policing
There might be hope that the Trump administration will not completely disregard the environment but one should remain skeptical until a bill is in front of congress with presidential support. The major problem I foresee switching from Obama’s high regulatory Clean Power Plan to a carbon tax system, is that carbon and greenhouse gasses are one of many factors contributing to the degradation of the environment. The Clean power plan, although clunky and slow to implement, monitored other forms of pollution.
On the other hand, the conservative carbon tax plan ensures the proper incentives moving forward and will encourage the development of clean technologies. Rebates to taxpayers (to offset higher electricity costs) ensure increased costs aren’t simply passed along to consumers.
Original Article: The macro textbook writer Mankiw was a contributor on the article as Professor Greenlaw briefly mentioned in class.
Caveat: Since the writing of this post, as many of you know, Trump passed an executive order slashing regulations on coal power plants and “ending the war on coal”. The new stance on coal power makes plans such as these irrelevant, at least the next 4 years, even if the ideas make sense.
Note: Pardon the random nature of these posts I was going through notes and wanted to get the ideas out before starting on the paper.