Turning Carbon Tax Theory Into Reality

A carbon tax has great appeal. It could reduce the risk of climate change by building emissions costs into market prices, thus discouraging the use of carbon-based fuels. And it would make a lot of revenue available for a broad range of purposes including reducing other taxes, new spending, or cutting the deficit. A nice new paper by Adele Morris of The Brookings Institution and Aparna Mathur of the American Enterprise Institute describes the upside of a carbon tax and proposes one model for suc...