Environmental Taxation (RFF)

This discussion paper for Resources for the Future (RFF) examines potential environmental tax policy reforms. It focuses primarily on a carbon tax, but also briefly considers a range of other possible changes including revising or eliminating various energy and environmental tax credits and deductions and changes to energy taxes that have substantial environmental implications. The paper draws on recent theoretical and empirical research to evaluate the effects of such reforms on tax revenue, pollution emissions, economic efficiency, and income distribution.