Carbon taxes and fiscal reform in the United Atates

Dale W. Jorgenson, Richard J. Goettle, Mun S. Ho, Peter Wilcoxen

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

In this paper we consider the economic and environmental impacts of taxes on emissions of greenhouse gases. Substituting carbon taxes for other sources of revenue or using the proceeds to reduce deficits or finance expenditures are the keys to integration of carbon taxes with fiscal reform. Recycling carbon tax revenues through reductions of capital income tax rates provides the largest margin of economic benefits over the costs of emissions control. Reducing capital tax rates lowers the cost of capital services and increases the rate of capital formation. This mechanism provides a dramatic illustration of the power of intertemporal general equilibrium modeling in the design of new energy and environmental policies for the United States.

Original languageEnglish (US)
Pages (from-to)121-138
Number of pages18
JournalNational Tax Journal
Volume68
Issue number1
DOIs
StatePublished - Mar 1 2015

Fingerprint

Carbon tax
Fiscal reform
Tax reform
Tax rate
Greenhouse gases
Tax
Cost of capital
Environmental impact
Capital income tax
Tax revenues
Economic impact
Costs
Capital tax
Margin
Economic benefits
Capital formation
Revenue
Environmental policy
General equilibrium modeling
Finance

Keywords

  • Carbon taxes
  • Fiscal reform
  • Revenue recycling

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

Cite this

Carbon taxes and fiscal reform in the United Atates. / Jorgenson, Dale W.; Goettle, Richard J.; Ho, Mun S.; Wilcoxen, Peter.

In: National Tax Journal, Vol. 68, No. 1, 01.03.2015, p. 121-138.

Research output: Contribution to journalArticle

Jorgenson, Dale W. ; Goettle, Richard J. ; Ho, Mun S. ; Wilcoxen, Peter. / Carbon taxes and fiscal reform in the United Atates. In: National Tax Journal. 2015 ; Vol. 68, No. 1. pp. 121-138.
@article{10aba8f5c7e340c3a9c54e1d6c523867,
title = "Carbon taxes and fiscal reform in the United Atates",
abstract = "In this paper we consider the economic and environmental impacts of taxes on emissions of greenhouse gases. Substituting carbon taxes for other sources of revenue or using the proceeds to reduce deficits or finance expenditures are the keys to integration of carbon taxes with fiscal reform. Recycling carbon tax revenues through reductions of capital income tax rates provides the largest margin of economic benefits over the costs of emissions control. Reducing capital tax rates lowers the cost of capital services and increases the rate of capital formation. This mechanism provides a dramatic illustration of the power of intertemporal general equilibrium modeling in the design of new energy and environmental policies for the United States.",
keywords = "Carbon taxes, Fiscal reform, Revenue recycling",
author = "Jorgenson, {Dale W.} and Goettle, {Richard J.} and Ho, {Mun S.} and Peter Wilcoxen",
year = "2015",
month = "3",
day = "1",
doi = "10.17310/ntj.2015.1.05",
language = "English (US)",
volume = "68",
pages = "121--138",
journal = "National Tax Journal",
issn = "0028-0283",
publisher = "National Tax Association",
number = "1",

}

TY - JOUR

T1 - Carbon taxes and fiscal reform in the United Atates

AU - Jorgenson, Dale W.

AU - Goettle, Richard J.

AU - Ho, Mun S.

AU - Wilcoxen, Peter

PY - 2015/3/1

Y1 - 2015/3/1

N2 - In this paper we consider the economic and environmental impacts of taxes on emissions of greenhouse gases. Substituting carbon taxes for other sources of revenue or using the proceeds to reduce deficits or finance expenditures are the keys to integration of carbon taxes with fiscal reform. Recycling carbon tax revenues through reductions of capital income tax rates provides the largest margin of economic benefits over the costs of emissions control. Reducing capital tax rates lowers the cost of capital services and increases the rate of capital formation. This mechanism provides a dramatic illustration of the power of intertemporal general equilibrium modeling in the design of new energy and environmental policies for the United States.

AB - In this paper we consider the economic and environmental impacts of taxes on emissions of greenhouse gases. Substituting carbon taxes for other sources of revenue or using the proceeds to reduce deficits or finance expenditures are the keys to integration of carbon taxes with fiscal reform. Recycling carbon tax revenues through reductions of capital income tax rates provides the largest margin of economic benefits over the costs of emissions control. Reducing capital tax rates lowers the cost of capital services and increases the rate of capital formation. This mechanism provides a dramatic illustration of the power of intertemporal general equilibrium modeling in the design of new energy and environmental policies for the United States.

KW - Carbon taxes

KW - Fiscal reform

KW - Revenue recycling

UR - http://www.scopus.com/inward/record.url?scp=84977893915&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84977893915&partnerID=8YFLogxK

U2 - 10.17310/ntj.2015.1.05

DO - 10.17310/ntj.2015.1.05

M3 - Article

AN - SCOPUS:84977893915

VL - 68

SP - 121

EP - 138

JO - National Tax Journal

JF - National Tax Journal

SN - 0028-0283

IS - 1

ER -