One critical economic question surrounding cap-and-trade is how to distribute the permits.

This paper measures the incidence of a carbon tax on gasoline using current income and two measures of lifetime income to rank households.

Carbon taxes are more regressive when annual income is used as a measure of economic welfare than when proxies for lifetime income are used.

This paper provides a simple analytic approach for measuring the burden of carbon pricing and shows how to adjust for the capital income bias contained in the Consumer Expenditure Survey.