Emissions regulations like carbon pricing raise the price of covered sector goods and thus can interact with and exacerbate other preexisting distortions in the economy. One such distortion is labor taxes. Another is emissions "leakage" due to the lack of comparable emissions pricing abroad or...

Several EU member states are exploring options for setting minimum domestic carbon prices within the EU Emission Trading System (ETS). First, a "TAX" policy would introduce a carbon tax equal to the difference between the prevailing ETS price and the targeted minimum price. Second, a national...

Several EU member states are exploring options for setting minimum domestic carbon prices within the EU Emission Trading System (ETS). First, a "TAX" policy would introduce a carbon tax equal to the difference between the prevailing ETS price and the targeted minimum price. Second, a national...

Economists have for decades recommended that carbon dioxide and other greenhouse gases be taxed--or otherwise priced--to provide incentives for their reduction. The United States does not have a federal carbon tax; however, many state and federal programs to reduce carbon emissions effectively...

Economists have for decades recommended that carbon dioxide and other greenhouse gases be taxed—or otherwise priced—to provide incentives for their reduction. The United States does not have a federal carbon tax; however, many state and federal programs to reduce carbon emissions effectively...

Carbon pricing policies worldwide are increasingly coupled with direct or indirect subsidies for emission-intensive and trade-exposed firms. We analyze the incentives created by novel forms of emissions intensity-based rebating (IBR) and contrast them with more common approaches like...

When it was launched in 2005, the European Union emissions trading system (EU ETS) was projected to have prices of around €30/ton CO2 and to be a cornerstone of the EU's climate policy. The reality was a cascade of falling prices, a ballooning privately held emissions bank, and a decade of low...