Who pays a price on carbon?

141Citations
Citations of this article
209Readers
Mendeley users who have this article in their library.

This article is free to access.

Abstract

We use the 2003 Consumer Expenditure Survey and emissions estimates from an input-output model based on the 1997 US economy to estimate the incidence of a price on carbon induced by a cap-and-trade program or carbon tax in the context of the US. We present results on how much different income deciles pay for a carbon tax as well as which industries see the largest increase in costs due to a carbon tax. We illustrate the main determinant of the regressivity: consumption patterns for energy-intensive goods. Furthermore, on a per-capita basis a carbon price is much more regressive than calculations at the household level. We discuss policy options to offset the adverse distributional effects of a carbon emissions policy. © 2010 The Author(s).

Cite

CITATION STYLE

APA

Grainger, C. A., & Kolstad, C. D. (2010). Who pays a price on carbon? Environmental and Resource Economics, 46(3), 359–376. https://doi.org/10.1007/s10640-010-9345-x

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free