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