Purpose
- Explores and develops market-based solutions.
Summary
Project will further advance the Center on Regulation and Markets (CRM) at the Brookings Institution’s work on carbon tariffs in the U.S. and launch new work on AI and energy.
Description
Stakeholder briefings on a US pollution tariff and voluntary export fee:
The Brookings Center on Regulation and Markets (CRM) hosted two stakeholder briefings in Spring 2026 on how the U.S. could implement a foreign pollution tariff and a novel "voluntary export fee" (VEF) proposal. The events brought together congressional staff, policymakers, and expert stakeholders to examine how a pollution tariff applied to imports—based on the emissions intensity of foreign goods relative to U.S.-produced equivalents—could level the playing field for American manufacturers, raise necessary revenue, encourage higher environmental performance abroad, and align U.S. policy with the emerging global field of carbon-based trade measures. Discussions drew on new Brookings research and explored the economic, legislative, and geopolitical dimensions of both proposals, including their potential to advance U.S. competitiveness while reducing global emissions.
Full-day workshop on AI & US Energy Affordability:
In April 2026, the Brookings Center on Regulation and Markets (CRM) hosted a full-day workshop to examine the intersection of AI expansion and rising electricity demand across the United States. The timely discussion featured federal and state policymakers, practitioners, think tank leaders, and academics to identify regulatory and technical approaches to expand electricity supply while protecting affordability for ratepayers and maintaining U.S. leadership in AI development.
Purpose
Climate change is one of the most important challenges mankind is facing, and it is therefore essential to find ways to address it through regulation and harnessing the power of markets. The Center on Regulation and Markets (CRM) at the Brookings Institution proposes a project that would consist of two parts: (1) Further advancing work on a U.S. carbon tariff, and (2) Al, climate, and energy. The first part would focus on how a carbon tariff would be an efficient way to address the market failure caused by greenhouse gas emissions (i.e., find a remedy for impaired markets) while bringing the U.S. in line with similar international measures. The second part—AI, climate, and energy—would focus on meeting the energy demands of an emerging AI sector without undermining U.S. climate goals. CRM proposes to explore these topics through a combination of stakeholder briefings as well as a full-day, invite-only workshop that emphasizes policy approaches that support robust private markets.
Scope
The scope is U.S. federal policy. This project would enable continued progress of CRM’s work on national carbon tariffs, and it would position Brookings as a first-mover in the nascent area of study on energy and AI.
Amount Approved$100,000.00
on 11/25/2025
(Check sent: 1/19/2026)
