Grainger, Corbett A. <br/><br/>
Who Pays a Price on Carbon? / 
Corbett A. Grainger, Charles D. Kolstad. 
 - Cambridge, Mass.  National Bureau of Economic Research  2009. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w15239 .
 - Working Paper Series (National Bureau of Economic Research)  no. w15239. .
<br/><br/> August 2009. 
<br/><br/> We use the 2003 Consumer Expenditure Survey and emissions estimates from an input-output model to estimate the incidence of a price on carbon induced by a cap-and-trade program or carbon tax in the US context. We present results on how much difference 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. We find that a policy targeting CO2 from energy consumption is more regressive than a price on all emissions. 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. 
<br/><br/>
<br/><br/><br/>System requirements: Adobe [Acrobat] Reader required for PDF files. <br/>Mode of access: World Wide Web.