The authors provide evidence from a nationally representative survey on Americans’ willingness to pay (WTP) for a carbon tax, and public preferences for how potential carbon-tax revenue should be spent. The average WTP for a tax on fossil fuels that increases household energy bills is US$177 per year. This
translates into an average WTP of 14% more on average for households across the United States,
where energy costs differ significantly across states. Regarding the tax revenues, Americans are most
in support of using the money to invest in clean energy and infrastructure. There is relatively less
support for reducing income or payroll taxes, returning dividends to households, and other
expenditure categories. Finally, Americans support using the tax revenues to assist displaced workers
in the coal industry enough to compensate each miner nearly US$146,000 upon passage of a
carbon tax. The article is available for download on the IOP Publishing website.
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