publication . Preprint . 2013

Taxing Electricity Sector Carbon Emissions at Social Cost

Paul, Anthony; Beasley, Blair; Palmer, Karen;
Open Access
  • Published: 21 Nov 2013
Abstract
Concerns about budget deficits, tax reform, and climate change are fueling discussions about taxing carbon emissions to generate revenue and reduce greenhouse gas emissions. Imposing a carbon tax on electricity production based on the social cost of carbon (SCC) could generate between $21 and $82 billion in revenues in 2020 and would have important effects on electricity markets. The sources of emissions reductions in the sector depend on the level of the tax. A carbon tax based on lower SCC estimates reduces emissions by reducing demand and through the substitution of gas for coal, whereas taxes based on higher SCC estimates induce switching to wind and nuclear...
Subjects
free text keywords: carbon tax, cap and trade, social cost of carbon, electricity, energy, climate
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