Bovenberg, A. Lans; Goulder, Lawrence H. - 2021
permits or, similarly, must exempt only a small fraction of emissions from the base of a carbon tax. These policies involve a … large difference between preserving firms' profits and preserving their tax payments. Offsetting producers' carbon tax … payments on a dollar-for-dollar basis (through cuts in corporate tax rates, for example) substantially overcompensates firms …
