- Investigates the causes of economic imbalances.
- Explores and develops market-based solutions.
The objective of this project is to develop a high-level report outlining key considerations for policymakers for designing and implementing a carbon tax policy in the United States.
Upon receipt of the grant, C2Es formally contracted with our two paper authors, one from the Brookings Institution and one from the American Enterprise Institute, so they could begin work. We had previously held preliminary discussions to go over broad outlines and the process for the development of the paper, so they were prepared to launch immediately. The authors submitted a rough draft of the paper in early August 2012, with some sections still needing work. As the 2012 elections neared, it was mutually agreed that the authors would provide a substantially complete version of the paper by the election, after which C2ES would conduct a peer review and then undertake to coordinate comments from our colleagues in business and academia. Unfortunately, one of our authors found himself unable to devote enough time to his portion of the report, which introduced delays of several months leading into early 2013. C2ES and the paper’s authors agreed to have AEI’s portion of the paper finished by a different author within their organization, with the original author providing final comments. This portion of the writing was completed in late fall of 2013 and the paper subsequently provided to outside reviewers. Expected publication date is March, 2014. Publication and distribution plans are being formulated now.
The research will investigate an approach to addressing climate change as an economic imbalance that needs to be valued and managed appropriately by market actors. Establishing a transparent and predictable price for greenhouse gas emissions through a carbon tax would provide a market-based policy solution to achieve important climate goals while providing flexibility and incentives for business innovation.
Project study will be national in scope; review is of the impacts of Federal policy and legislation on the country's energy markets.
(Check sent: 7/2/2012)