What Can a Carbon Tax Actually Accomplish?

Carbon taxation as a policy to rein in global climate change has been a favorite of economists and anathema to politicians. RCF Vice President, Donald Jones, Ph.D., investigated the power that a carbon tax might have to reduce carbon emissions.  Using derived demand models for electricity and gasoline his preliminary findings suggest that these carbon pricing policies would have limited effects on gasoline consumption but could noticeably reduce electricity consumption.  While further investigation is warranted, he states that “more aggressive fuel mileage targets as well as alternative-fueled vehicle adoption may be more effective in the long run in reining in CO2 emissions from transportation.”

For the PDF version of the full report please click here: https://www.rcfecon.com/wp-content/uploads/2019/02/The-CO2-Emission-Reduction-Potential-of-a-Carbon-Tax-Feb-2019.pdf

For additional information or questions, please contact:

Donald Jones, Ph.D.

RCF Vice President & Senior Economist

djones@rcfecon.com, 312-431-1540 ext. 1528.