Abstract

Page numbers in italic designate figures and tables.

Index

Page numbers in italic designate figures and tables.

  • abatements 69, 98, 161, 164

  • accelerated depreciation 143

  • accidents, traffic 215, 222

  • ACES (American Clean Energy Security) Act see American Clean Energy Security Act (ACES)

  • Adjusted Gross Income (AGI) 13

  • administration, carbon tax 38–61, 55, 127; advantages and disadvantages 44–50; and consumers 50–1; exemptions 169–70; fossil fuels 43, 43–4, 50–1; of GHG emissions and revenues 39–41, 40; international considerations and 55–9; land use 51; non-fossil fuels 52–5; policies 41–3

  • Advanced Research Projects Agency-Energy (ARPA-E) 184

  • after-tax income 5, 13, 128

  • AGI (Adjusted Gross Income) 13

  • agricultural management 54

  • air pollution 200–1, 213, 214, 222

  • allowances 34, 165

  • alternative emissions targets 73–7

  • American Clean Energy Security Act (ACES) 25, 34, 63, 67, 100, 114n2, 162, 165–6

  • American Taxpayer Relief Act (ATRA) 14n12, 146

  • appliances 196, 199, 204

  • applied research 181

  • Argentina 242

  • ARPA-E (Advanced Research Projects Agency-Energy) 184

  • Article IV consultations 250

  • ATRA (American Taxpayer Relief Act) 14n12, 146

  • auctions 33–4, 145–6, 188

  • Auerbach, A. J. 3, 6

  • Australia 9, 14n6

  • averaging rules 203

  • aviation fuel emissions 56

  • avoidance of carbon tax 46, 59, 88, 93n1, 145

  • balanced budget 6

  • Baneman, D. 13

  • banking 67, 69

  • Barrage, L. 91

  • Bartlett, B. 14n3

  • baseline emissions 67–8, 72, 79n7

  • basic research 181–4

  • BAU (business as usual) 235–6, 241–2, 251n7

  • BCAs (border carbon adjustments) 168–9, 172–3, 176n21

  • behavior 223–4

  • benchmarks 168–9, 235, 249

  • Bingaman, J. 198

  • Bioenergy Research Centers 184

  • Bipartisan Policy Center’s Debt Reduction Task Force (2010) 14n1

  • Bird, L. 8

  • block allocations 165

  • border carbon adjustments (BCAs) 168–9, 172–3, 176n21

  • border measures 249

  • border tax adjustments (BTAs) 39, 42, 53, 56, 60, 161, 173

  • borrowing 67

  • Bovenberg, L. A. 10

  • British Columbia, Canada 8, 9, 50–1, 61n10

  • Brown, S. P. A. 218

  • Btu tax 165

  • budgets 4–5; deficits 2–3, 13, 35, 86, 192; deficits reductions 89–90, 94n17; research 183

  • bunker fuels 56

  • Bush (G. W.) administration 242

  • business as usual (BAU) 235–6, 241–2, 251n7

  • business-cycle fluctuations 84

  • CAA (Clean Air Act) 191, 193, 201–4, 214, 253

  • CAFE (Corporate Average Fuel Economy) standards, 71, 78, 81, 219–221, 225

  • Camp, D. 142

  • Cancun Agreements 245

  • cap-and-trade 35, 63, 77, 142, 145–6, 155n1, 165, 175n14; administration 201–2, 208n10; domestic programs 247–8; SO2 200–1

  • capital income 110

  • capital owners 149–50

  • capital taxes, cutting revenue on 88, 93–4n14

  • carbon: alternatives 85; imports 58–9; sinks 38–9, 51–2

  • carbon capture and storage (CCS) 39, 51, 61n10

  • carbon dioxide (CO2): from fossil fuel combustion 43, 43–4; fossil fuels, sequestered from 51; non-fossil fuel 52–3

  • carbon dioxide (CO2) emissions 19–20; country-specific 169; from industrial processes 52–3, 160; intensity 20, 36n4, 112, 112–14; international 240–4, 251n8; leakage 53, 57–8, 61n14, 160–4; non-CO2GHG 53; offset provisions 35; price trajectories 67; taxes on 24–5, 36n6

  • carbon dioxide (CO2) emissions reduction 62; alternative targets 74–8, 75–6; and cap-and-trade systems 35, 201–2, 208n10; under carbon tax 21–3, 26n5; comparisons 22, 24; environmental benefits of 202; 50 percent target 67–73; global benefits of 42; goals and pledges 63; regulatory approaches to 64; targets 63, 81, 178

  • Carbone, J. C. 88, 90

  • carbon-for-corporate tax swap 141–3, 147–8, 150, 150–4

  • carbon prices and pricing 69–70, 69–74, 142; benchmarks for 237–8, 251n4; burden of 107; under the Clean Air Act 201–4; emissions 180–1, 240–1; energy 237–9, 251n4; international 237–44, 244–8; levels 125–6, 138n6; for low-income households 122–4; policies 18, 19–27, 180–1, 193–4, 203; taxes 5, 86, 105, 148, 156n9; and technology policies 178–90; volatility in 34, 36–7n18

  • carbon pricing club 57–60, 247

  • carbon taxes (CT) 6–7, 35, 52–5, 135–6; administration 38–61; avoidance 46, 59, 88, 93n11, 145; burden on low-income households 102–4, 120–40; and competitiveness 162–3; and corporate tax reform 141–58; coverage 55; and deficit reduction 9; economic effects of 84–91, 105, 128; efficiency criteria on 8; emission reduction under 21–3; and energy-intensive trade-exposed industries 159–77; and greenhouse gas emissions 39–41; implementing 194–6; incidence 101–4, 106–7; international issues 39, 42, 51; monitoring 51; policies 41–3, 191–210; and price rises 148, 156n9; revenues from 7, 7–10, 14n5, 18, 83, 145–6, 155n5; for transportation policies 211–32; uses for 32–4, 86–9 see also upstream carbon taxes

  • CBO (Congressional Budget Office) 2, 10, 14n11, 89–90, 123, 145–6

  • CBR (common but differentiated responsibilities) 169

  • CCS (carbon capture and storage) 39

  • CES (Clean Energy Standards) 198

  • China 8, 242

  • Clean Air Act (CAA) 191, 193, 201–4, 214, 253

  • Clean Air Interstate Rule 201

  • clean-coal power 186

  • Clean Energy Act 67

  • Clean Energy Standards (CES) 24, 198

  • clean energy technology policies 197–8

  • clean technology investments 63

  • climate change: damage from 85, 152, 179, 217–18; and the economy 91–2, 94n22; and international price agreements 244–6; mitigation 227, 235–7; policies to address 204–5

  • climate mitigation instruments 18–37; alternative policies costs and impacts on 27–34; and carbon pricing policies 19–27; taxes versus trading 34–5

  • climate mitigation metrics 236–7

  • climate mitigation policies 21, 23–7, 24, 29–30, 180, 182–3, 185–6

  • Clinton administration 165

  • CO2 (carbon dioxide) see carbon dioxide (CO2)

  • coal 19–20; emissions policies 200–1; methane from 54; new 81; power 186; processing 44–5; switching away from 23–4; upstream carbon tax on 44–6

  • coal-fired electricity 113–14, 121

  • collaboration 184

  • combustion 45, 48–9

  • common but differentiated responsibilities (CBR) 168–9

  • communication 184

  • compensation schemes for low-income households 18, 33, 120–40; absence of 122–4, 123–4; and government payment increases 125, 125–6; by offsetting costs 125–6, 126–7; options for 127–35, 129, 133; revenue needed for 135–6 see also lower-income households

  • competitiveness 53, 144, 162–3, 168, 170–1

  • congestion 214–15, 222, 228n2

  • congestion pricing 222–3

  • Congress and carbon tax implementation 5, 195–6, 207n3

  • Congressional Budget Office (CBO) 2, 10, 14n11, 89–90, 123, 145–6

  • consumer mistakes 194

  • consumer price index (CPI) 125

  • consumers 9–10, 47–8, 50–1, 97, 105, 220

  • consumption taxes 43, 123, 148, 156n8

  • coordinated fiscal discipline 5

  • Copenhagen Accord 235–7, 242, 245

  • Corporate Average Fuel Economy (CAFE) standards 71, 78, 81, 219–21, 225

  • corporate income taxes 161, 170–1, 176n22–4

  • corporate investments expensing 150

  • corporate tax reform 110, 141–58

  • corporations: tax cuts for 9, 87–8, 93–4n14, 110, 142, 152–4; tax rates for 109, 115n11, 129, 146, 155n6, 156n12

  • corrective fuel taxes 216–18, 228n5

  • Cosbey, A. 169

  • cost-effectiveness 174

  • costs: abatement 243–4, 251n9; administrative 131; comparing 29–32, 30–1; distribution 187; economic 29, 36n12; energy sector 29–30, 30, 36n12–17; and fiscal system linkages 30–2; to government 136–7; household 113, 123; for light-duty vehicles 217; of nuclear power 202; societal 7, 188

  • countries’ climate mitigation efforts see international climate mitigation efforts

  • coverage of carbon tax base 45

  • CPI (consumer price index) 125

  • credit trading 197, 219–21

  • cross-country comparisons 234

  • crude oil 44

  • CT (carbon taxes) see carbon taxes (CT)

  • Current Population Survey 132

  • cyclical unemployment 92

  • debt crisis 89, 94n19

  • debt-to-GDP ratio 3–4, 6, 14n1, 89

  • deductions and exclusions 88, 93–4n12

  • deferrals 143, 145

  • deficit reduction 1–6, 9, 89–90, 92, 94n17, 141–2, 152–4, 155n1

  • Dellink, R. 236

  • demand-side effects 84

  • demonstration projects 185–6

  • Denmark 9

  • deployment policies 186–8

  • depreciation rules 145

  • destination-based carbon tax 168

  • developing countries 35, 245

  • development 181

  • diesel fuel 10, 25–7, 216

  • Dinan, T. 7, 10, 110, 142

  • direct deposits 130, 135

  • discount rate 200, 219

  • distortionary taxes 109

  • distributional effects: of carbon-for-corporate tax swap 148–52; described 97–9; policies regarding 195–6; prior to revenue uses 101–7; regional 112–14; and revenue uses 101; tradeoffs 107–12

  • distribution of revenues 9–10

  • DOE (U.S. Department of Energy) 184–5

  • domestic carbon tax 247–8

  • domestic offsets 67

  • domestic tax credits 35

  • double dividend 86

  • downstream deposit/refund mechanisms 54–5

  • downstream taxation 38–41, 39, 50, 164

  • durable goods, energy-efficient 199

  • Durban Platform 247–8

  • earmarking 227

  • earmarking carbon 33

  • Earned Income Tax Credit (EITC) 127, 133–4

  • Echeverri, P. 203

  • economic: activity distortions in 30–2, 36n16; benefits of Earned Income Tax Credit 134; costs 29, 36n12; distortions 30–3, 36n16–17; effects of carbon tax 128, 144, 155n2, 196; efficiency 86, 127; growth 5–6, 91–2; projections 4; welfare 84–5

  • economic incidence see distributional effects

  • Economic Stimulus Act of 2008 130–1

  • efficiency 8

  • efficiency standards 199–200, 204

  • EITC (Earned Income Tax Credit) 127, 133–4

  • EITE (energy-intensive trade-exposed) industries see energy-intensive trade-exposed (EITE) industries

  • electricity: coal-fired 113, 121; consumption 199; demand 20, 23–5; emissions tax 28, 32; grid 44; prices 200, 249; sector 196–7; use 102

  • Elmendorf, D. W. 6

  • embodied emissions 168–9

  • emerging economies 245

  • EMF 24 (Energy Modeling Forum) see Energy Modeling Forum (EMF 24)

  • emission rates 242–3

  • emissions see carbon dioxide (CO2) emissions

  • emissions trading systems (ETS) 18, 22, 34–5, 61n2, 100, 114n2

  • employers 132

  • energy: consumption 7, 113–14; efficiency 25, 199–200; paradox 219–20, 229n7; saving investments 132–3; security 215, 218

  • Energy Frontier Research Centers 184

  • Energy Guide labels 199, 208n9

  • Energy Information Administration 21, 198

  • energy-intensive trade-exposed (EITE) industries 39, 42, 159–77; alternative policy options for 164–71; determining policy treatment policies for 161–4; options comparisons for 171–4

  • Energy Modeling Forum (EMF 24) 62–82; and emissions target scenarios 67–77, 68; modeling teams 66, 66; overview of study design 64–6; policy assumptions 64, 82; scenario matrix 65; technology assumptions 74, 80–1

  • energy prices: impacts 86, 93n9; international 238–40

  • energy-related emissions 19–20, 21–3

  • energy sector costs 29–30, 30, 36n12–17

  • Energy Star 199

  • energy technology policy 178–90; background 179–80; demonstration projects 185–6; deployment 186–8; research and development 180–5

  • Engen, E. M. 6

  • enteric fermentation 53–4

  • environmental effects on economic growth 91

  • Environmental Protection Agency (EPA) 60, 162, 199, 201–4

  • environmental tax credits 111

  • EPA (Environmental Protection Agency) 60, 199, 201–4

  • ETS (emissions trading system) 34–5, 61n2, 100, 114n2

  • European Union (EU) 8, 162, 166

  • excise taxes 46–7

  • exemptions 42, 48, 161, 164–5, 169–70, 175n12, 195

  • expenditures 4 see also costs

  • expiring business tax provisions 146–7, 147 extenders 142

  • externalities: efficiency 8; environmental 178–80; global 205–6; and taxes 151, 216; transportation-related 11, 41, 212–15, 223

  • federal: budget deficits 35, 89–90, 94n17, 192; debt-to-GDP ratio 3–4; income tax rates 126, 144, 155n3; residential energy credits 132–3, 133 feebates 25, 176n17, 187, 221

  • Feenberg, D. 13

  • Feldstein, M. 6, 13

  • Feldstein-Feenberg-MacGuiness proposal 14n13–14 50

  • percent reduction targets 66–73, 80

  • fiscal: cushioning 49, 59, 238–9; deficits 89–90; discipline 5; dividend 32; gap 4; linkage policies 30–2, 31; outlook 2–5, 192; solutions 1–17

  • Fischer, C. 164, 173, 200

  • fixed payments 127

  • flexibility mechanisms 188

  • flow-through enterprises 143

  • foreign firms 143, 145, 164

  • forestry 51–2

  • former Soviet bloc 235

  • fossil fuels: combustion 43–4; emissions 50–1; non-energy use of 51; overconsumption of 193; sequestered CO2 from 51; and state economies 112, 112–14; taxes 7, 38–9

  • fossil-steam power plants 203

  • Fox, A. K. 164, 173

  • fuel: conservation costs 29, 36n14; economy 62, 213; imports 56; standards 25–6, 218–20, 228–9n6; taxes 28–9, 48, 216–18, 224, 228n5t, 231–2

  • fuel-saving technologies 219

  • Fukushima nuclear plant 201

  • Fullerton, D. 107

  • funding: corporate tax reductions 153; gap for infrastructure 224–6; for LIHEAP 135; public spending 90–1; for research 111, 183–4

  • FutureGen Initiative 186

  • G-20 nations 250

  • Gale, W. G. 3, 5, 6

  • gas, upstream carbon tax on 44–5

  • gasoline 8, 10–11, 25–7, 216–18 see also motor fuel

  • GDP (gross domestic product) 2–8, 10–13, 84–6, 93n1–4, 93n6–7

  • General Agreement on Tariffs and Trade (GATT) 58–9

  • generators, regulations for 203

  • Germany 9

  • GHG (greenhouse gas) see greenhouse gas (GHG)

  • global climate change 253

  • global emissions 42, 173, 245

  • Global Positioning System (GPS) technology 221

  • global warming 41

  • global warming potentials (GWP) 43, 53

  • Goulder, L. H. 10, 85

  • government: borrowing 89; payments 51–2; research 178–9, 182, 184; spending 5, 12, 90–1, 94n20

  • GPS (Global Positioning System) technology 221

  • Grainger, C. A. 109

  • grandfathering 162

  • greenhouse gas (GHG) 179; and carbon tax revenues 39–41, 40; under the Clean Air Act 201–4; controlling 35; emissions 8; and long-term growth 83; non-CO2 53; taxing 39, 43, 55–7; technology policies to reduce 178–90

  • gross domestic product (GDP) 2–8, 10–13, 84–6, 93n1–4, 93n6–7

  • growth and employment 84–91

  • Hafstead, A. C. 85

  • Halperin, D. 155n2

  • Harberger, A. 149

  • harmonized policies and measures 244–5

  • Hassett, K. A. 9, 109, 144

  • health care spending 4

  • HEVs (hybrid electric vehicles) 26–7

  • HFCs (Hydrofluorocarbons) 54, 56

  • high-income households 99; and carbon tax burden 8; and energy saving investments 132–3; and revenue increases 5; tax expenditures of 13

  • highway lobby 227

  • Highway Trust Fund 225–7

  • historic base year 240–1, 251n5

  • household income sources 104, 106, 106–7

  • households energy costs 111–12

  • Houser, T. 237

  • H.R. 2454 see American Clean Energy Security Act (ACES)

  • Hubbard, R. G. 6

  • Huntington, H. G. 218

  • hybrid electric vehicles (HEVs) 26–7

  • hybrid subsidies 26–7, 29

  • Hydrofluorocarbons (HFCs) 54, 56

  • hypothecation 227

  • IMF (International Monetary Fund) 6, 14n1

  • imports 56, 168–9, 168–70, 176n20

  • incentives: business 145; to buy fuel-efficient vehicles 111, 221; for energy-saving investments 127, 132–3; private sector 179; for renewable technologies 197–8; for research and development 179, 189n2–3; to work 127–8 see also feebates; rebates

  • income and substitution effects 5

  • Income Home Energy Assistance Program (LIHEAP) 135

  • income taxes 86–7; credits 10; expenditures 12; rates 129–30; rebates 127, 130–1

  • indexing transfer payments 125–6

  • India 242

  • inducement prizes 185

  • Industrial Assessment Centers 200

  • industrialized countries 235

  • industrial opposition to upstream taxation 48

  • industrial processes, carbon dioxide emissions from 52–3, 160 influential groups, compensation for 33

  • infrastructure: and fuel taxes 212; funding gap for 224–6, 229n9, 229n11

  • innovation strategy 179–85

  • input/output table 58, 98, 101

  • institutions 194

  • insurance markets 186, 189n7

  • intensity-based emission goal 242

  • interaction effects 13

  • Interagency Working Group on Social Cost of Carbon 225

  • interest rates 6

  • Internal Revenue Service (IRS) 34, 38, 46, 130–1, 134, 167

  • international climate mitigation efforts 233–52; competitiveness 53, 144, 160–1; considerations 55–9; cooperation 206; goals 64; issues 39, 51; offsets 67; policy implications 248–50; price programs 237–44; tax rules 145, 155n4; United States implementation of 244–8

  • International Monetary Fund (IMF) 6, 14n1, 250

  • investment capital, competing for 144

  • investments 90, 203; incentives 144; public sector 185–6, 189n6; tax credits for 197, 207n7

  • IRS see Internal Revenue Service

  • itemized deductions, cap on 13, 14n13–14

  • Japan 201

  • Johnson, S. 14n1

  • Joint Committee on Taxation (JCT) 130, 146

  • Keohane, R. O. 206

  • knowledge generation 179, 181, 186

  • knowledge spillovers 185–6, 197–8, 207–8n8

  • Kolstad, C. D. 109

  • Krosnick, J. A. 206

  • Krupnick, A. 21, 23–7, 31

  • Kwak, J. 14n1

  • Kyoto Annex I 163–4, 172, 175n10

  • Kyoto gases 67, 78n5

  • Kyoto Protocol 235, 236–7, 240, 245

  • labor income, impact of taxes on 30, 149–50

  • landfills 54

  • land use carbon sinks 51–2

  • leakage 53, 57–8, 61n14, 163–4, 168, 173, 249

  • legal matters 58, 162

  • light-duty vehicles (LDV) 81, 214–15, 217, 217

  • LIHEAP (Income Home Energy Assistance Program) 127, 135

  • linking 249–50

  • lobbying 171

  • local pollution 216

  • London 222

  • long-term growth, effects of tax-financed deficit reductions on 5–6

  • loopholes 142, 147

  • lower-income households 99, 109, 115n13; carbon tax burden on 9, 101–2, 102, 120–40, 148, 156n10; policy options for 137; and VAT related rebates 12, 14n10 see also compensation schemes for low-income households

  • Low Income Home Energy Assistance Program (LIHEAP) 127

  • lump-sum rebates and tax transfers 109, 114n6, 141, 151, 151–2

  • MacGuineas, M. 13

  • MacInnis, B. 206

  • McKibbin, W. A. 110, 236

  • macroeconomic vulnerabilities 218

  • manufacturing industries 162, 231–2

  • manure management 54

  • marginal effective tax rates (METRs) 128, 144

  • market-based emissions policy 179

  • market-based trading system 178, 179

  • market failure 219–20

  • Marron, D. 110

  • Mathur, A. 9, 101, 102–3, 109, 144

  • measurement points/taxpayers 44–5

  • measuring emissions 49, 52, 58, 161

  • Medicare 5, 131–2

  • Mercury and Air Toxics Standard (MATS) 201

  • Metcalf, G. E. 8–9, 53–4, 110, 111

  • methane 53–4, 62n12

  • metrics: benchmarks for comparing 235–6; for comparing effort 236–44; for economic activity assessment 84; for manufacturing output levels 167

  • METRs (marginal effective tax rates) 144

  • mileage taxes 211–12, 221–2

  • mitigation effort metrics 234–5

  • mitigation instruments see climate mitigation instruments

  • mobile combustion emissions 54

  • modeling teams 64, 66

  • Morris, A. C. 101, 102–3, 110

  • motivations 196–200

  • motor fuels 10–11, 102, 211–12 see also diesel fuel; gasoline

  • motor vehicle policies 212–24

  • multinationals 143, 145

  • NAICS (North American Industrial Classification System) 162

  • national debt projections 3 National Energy Modeling System (NEMS) 21, 198

  • national saving 5–6

  • National Surface Transportation Infrastructure Finance Commission 225

  • national taxes 41–2, 61n2

  • natural gas 19–20, 44, 52–3

  • negative cost technologies 219

  • NERA Economic Consulting study 88–9, 94n15

  • Netherlands, The 9, 221

  • New Coal policy 81

  • 1983 Social Security Reform 4–5

  • nitrogen oxides (NOx) 201–2

  • nitrous oxide (N2O), 54–5

  • non-CO2 GHG emissions 53

  • nondiscrimination obligations 168

  • non-electricity fuel use, reducing 20

  • non-energy use of fossil fuels 51

  • non-fossil fuel emissions 38–9, 48, 52

  • non-market goods and services 84, 93n1

  • North American Industrial Classification System (NAICS) 162

  • Norway 9

  • NOx Budget Program 201

  • nuclear power 19, 201–2

  • nuclear power, emissions from 200–1

  • Nunns, J. 14n10, 154

  • Obama, B. 142–3, 198

  • Obama administration 202

  • OBR (Output-based rebate) 165–7

  • OECD (Organization for Economic Cooperation and Development) 10, 144, 237

  • Office of Management and Budget (OMB) 143

  • offsets 9–10, 120–40

  • oil import fees 219

  • oil price shocks 218

  • oil shale reserves 215, 218

  • oil taxes 26

  • OMB (Office of Management and Budget) 143

  • options for low-income households 127, 129

  • Oregon 221, 222

  • Organization for Economic Cooperation and Development (OECD) 10, 144, 237

  • Orzag, P. R. 5

  • out-of-compliance fines 26

  • output-based rebates (OBR) 165–7

  • output levels 163, 165–7, 175n8

  • Palmer, K. L. 198

  • Paltsev, S. 10

  • Parry, I. W. H. 10, 31, 88, 110–11, 199–200

  • passed backwards 85, 104–5

  • passed forward 85, 98, 101, 108, 113, 123

  • pay as you drive insurance 222

  • payroll taxes 10, 87–8, 110–11, 127, 131–2, 138–9n12

  • PCAST (President’s Council on Science and Technology) 183–4

  • per-mile tolls 10, 211, 222

  • personal service corporations 155n2

  • personal taxes 30, 110–11

  • Peterson-Pew Commission on Budget Reform (2011) 14n1

  • petroleum 211, 218

  • petroleum products 44, 46

  • Pittsburgh G-20

  • Leaders’ Agreement 250

  • plug-in hybrid electric vehicles (PHEVS) 26–7

  • point of combustion 48–9

  • point of distribution 50

  • points/taxpayers 44–5

  • policies: administration of carbon tax 41–3; alternative 27–34, 28, 164–74, 175; carbon price 18, 19–27, 69–71, 70; for competitive losses 161–71; energy efficiency 200; greenhouse gas 63; implementation 246–7; for Kyoto gases 69, 172; for low-income households 122–38, 129, 138n1; motor vehicle 212–24; national carbon tax 193–4, 207n2; and national circumstances 248; price-based 203; progressive 100; public transport 223–4; regional and regulatory 191–210; regressive 99–100; for revenue use 32–4; second best 172; subnational 204–6; surveillance 249–50; technology 187, 223–4

  • policy: assumptions 64, 82; costs 29–32; tools 100

  • policymakers, key messages for 1, 18, 38–9, 62–3, 83, 97–8, 120–1, 141, 159–60, 178, 191–2, 211–12, 233–4

  • political support 33

  • polluter pays principle 48

  • pollution 86, 91, 200–1, 213, 214

  • Potter, S. 6

  • power sector: and CO2 emissions 19–20, 36n7; policies 23–5, 191–7; tax on emissions 24–5

  • President’s Council on Science and Technology (PCAST) 183–4

  • President’s National Commission on Fiscal Responsibility and Reform (2010) 14n1

  • prices and pricing see carbon prices and pricing

  • private sector incentives 179

  • private sector research and development 180–2

  • processing, fossil fuel 44

  • producer prices 105

  • production tax credit 197, 207n6

  • productivity 91

  • profits 170

  • progressive policies 8–9, 11–12, 20, 97–100, 109, 111, 131

  • public acceptance 41

  • public funding for research 179

  • public good 179

  • public sector investment 185–6

  • public spending 90–1

  • public support for research and development 182–4

  • public transportation 223

  • Quadrennial Energy Review process 184

  • Quadrennial Energy Technology Review 184

  • quantitative emission targets 246–7

  • Quebec, Canada 9

  • rates, emission 242–3

  • Rausch, S. 107, 111, 142

  • R&D see research and development (R&D)

  • R&D tax credit 182

  • rebates 109, 114n6, 161, 221; for EITE industries 162, 166; income tax 127; and output levels 165–7, 172; payroll tax 127; policies 152; VAT related 12, 14n10 see also feebates

  • Rebelo, S. 6

  • recession, effects of 4

  • reduction targets 64, 66

  • refunds, tax 10, 130–1

  • regional incidence 112–14

  • regressive policy 99–100

  • regulations 28, 38, 66, 193, 207n1; emission target and 81; greenhouse gas 202–4; redundant 203, 206

  • Reilly, J. M. 111, 142

  • renewable energy technology policies 20, 197–8

  • renewable generation fuels 23–5, 36n8, 36n9

  • renewable portfolio standard (RPS) 23, 62, 81, 197–8

  • repatriation tax 145

  • research and development (R&D) 179–84; credit 145; defined 181; expenditures 181

  • research and experimentation credit 145

  • retail price increases 97

  • revenues: and capital taxes 88, 93–4n14; from carbon taxes 7, 7–10, 14n5, 39–41, 87, 147, 155n5, 229n14–15; and carbon tax incidence 101–4, 106–12; for corporate reform 147–8, 153, 155–6n7; from corporate taxes 110, 143, 170; earmarking 111; increases 4–5; for low-income households 109, 115n13, 135–6, 139n18; neutrality 150–4, 170; options 11–13; policies 27–9; recycling 109, 114n7; tax reform option effects on 12; from transportation taxes 212, 228n1, 229n15; using 33–4, 122–38, 138n1

  • ring fencing 227

  • risks: environmental 141–2; financial 89, 111, 186, 218; health 214; legal 162; traffic accident 215

  • roads 215, 222–3, 229n8

  • Rogers, L. 110, 142

  • Romer, C. D. 5

  • Romer, D. H. 5

  • Romney, M. 142

  • Rosenberg, J. 10–11, 14n10, 154

  • RPS (renewable portfolio standard) 197–8

  • safety issues 201

  • savings 5, 6, 38

  • sea level rise 91

  • Section 41

  • of the U.S. Internal Revenue Code 182

  • Section 111

  • of the Clean Air Act 203–4

  • shale gas 20–1, 53, 63

  • share of income 97

  • Singapore 222

  • Slemrod, J. 6

  • Small, K. A. 222, 232

  • Smith, H. 8

  • SNAP (Supplemental Nutrition Action Payments) 125, 134–5

  • SO2 (sulfur dioxide) 201–2

  • Social Security 5, 25, 125, 131–2

  • socioeconomic status, measuring 103

  • source performance standards 202

  • spending cuts 4–5

  • SSI (Supplemental Security Income) payments 125

  • standards: emissions 54; fuel economy 25–7, 218–20, 228–9n6; performance 202; portfolio 23, 206

  • Stanford Energy Modeling Forum (EMF 24) see Energy Modeling Forum (EMF 24)

  • “starve the beast” hypothesis 5, 14n3

  • state economies, energy intensity in 112, 112–14

  • statutory corporate tax rate 144

  • Stavins, R. N. 8

  • stimulus payments 130

  • Stockholm 222

  • Stokes, D. E. 183

  • Stokey, N. 6

  • subnational climate policies 204–6

  • subsidies: auctions for 188; energy efficiency 200; for HEVs and PHEVs 27; technology 187; transit fare 211

  • sulfur dioxide (SO2) 201–2

  • Sumner, J. 8

  • supernormal profits 150

  • Supplemental Nutrition Action Payments (SNAP) 125, 134–5

  • Supplemental Security Income (SSI) 125

  • supply-side impacts 84

  • surface mining 54

  • surveillance 249–50

  • sustained deficits 6

  • Sweden 9

  • tariffs 169–70, 236

  • tax: avoidance 46, 59, 88, 93n11, 145; breaks for business 142; burdens 33–4, 122–4, 148–50, 149–50, 156n11; code uncertainty 145; credits 197, 207n6; cuts 5, 6, 86–9, 91–2; deferrals 145; exemptions 43; expenditure reform 12–13, 14n12; fuel 48, 212, 228n1; increases 4–6; preferences 147; reform and deficit reduction 142; returns 130, 138n10

  • taxable profits shifting 144

  • tax credits: for businesses 145, 147; Earned Income 127, 182; environmental 111; for hybrid vehicles 26

  • taxes: changes in 5–6, 14n4; Congress and 195–6; excise 46–7; and fiscal system distortions 30–2; fuel 10–11, 28–9, 216–18, 224, 228n5; in the government’s budgets 34, 36n17; on imports 56; multinational 99–100; national 41–2, 61n2, 144, 155n3; on petroleum products 219; on power emissions 24–5; reduction in 90, 94n18, 110; versus trading 34–5; transportation 221, 226–7

  • tax-financed deficit reductions 5–6, 14n4

  • tax on carbon dioxide see carbon (CO) taxes

  • taxpayers 9, 45, 59–60, 130

  • Tax Policy Center (TPC) 13, 148–52, 154

  • tax-sheltering 30–1

  • tax swaps 109–11, 114, 114n7, 141–3, 147–8, 150–3

  • technologies: assumptions 64, 78n3, 80–1; carbon capture and storage 51; climate innovation 178–85; demonstration projects 185–6; fuel-saving 219; measurement 45–6, 52–3; mitigation 183; monitoring 49; options 62–3; policies 223–4; tax credits for 197, 207n6

  • Title IV of the Clean Air Act Amendments of 1990 201

  • Toder, E. 10–11, 13, 14n10, 110, 154

  • tolls 10, 211, 221–2

  • ton-mile tax 222

  • TPC (Tax Policy Center) 13, 148–52, 154

  • tradable performance standard 167, 176n16

  • trade intensity 162, 175n5

  • tradeoffs 107–12

  • Trade Review Policy Board 250

  • transfer payments 107, 110–11, 125, 125–6

  • transit fare subsidies 211

  • transportation 25–7, 211–32; emissions 19–20; finance 224, 224–8; fuel reduction 20; motor vehicles 212–24; regulatory policies 81; spending for 225; taxes 226–7, 226–8

  • trans-shipment provisions 169

  • uncertainty of greenhouse policies 63

  • undervaluation 200

  • unemployment 91–2, 94n23

  • unemployment, carbon tax effect on 83

  • United Kingdom 221

  • United Nations climate change negotiations 235

  • United Nations Framework Convention on Climate Change (UNFCCC) 42, 168, 240, 246–7

  • United Nations-sponsored climate negotiations 235

  • United States Census Bureau 132

  • United States Department of Energy (DOE) 184–5, 199–200

  • United States Department of Transportation 226

  • United States implementation 244–8

  • United States Supreme Court 202

  • United States Treasury 60

  • University of Ottawa 8

  • upstream carbon taxes 38–9, 44–9, 164

  • use-inspired basic research 183, 183–4

  • value-added tax (VAT) 10–12, 14n11, 50, 56

  • value pricing 222

  • vehicle miles traveled (VMT) 221

  • vehicles and CO2 emissions 20

  • Victor, D. G. 206

  • vulnerable groups, compensation for 33

  • Waxman-Markey bill see American Clean Energy Security Act (ACES)

  • Weisbach, D. 53–4, 62n12

  • Williams, R. C. 31, 88, 91, 110–11

  • windfall profits 100

  • wind power 197, 207n7

  • workers 132

  • World Trade Organization (WTO) 56, 58–9, 250

  • World Trade Organization/General Agreement on Tariffs and Trade (WTO/ GATT) legal rules 58–9

  • World Trade Organization Subsidies Code 166–7

  • worst technology producer 168–9

  • WTO/GATT legal rules 58–9

  • zero-rating of exports 56