Don’t take distributional analysis of a carbon tax for granted

Source: Niskanen Center
by Shuting Pomerlau

“One of the most common critiques of a carbon tax is that it would have a regressive distributional impact. However, the United States’ continued reliance on a patchwork of climate regulations is concerning. In addition to the several advantages of a carbon tax over climate regulations, there is a significant disparity between the distributional analysis of carbon taxation and climate regulations. While many studies model the distributional effects of a carbon tax, the lack of distributional analysis of environmental regulations is jaw-dropping.” (06/21/22)