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Can We Price Carbon?$
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Barry G. Rabe

Print publication date: 2018

Print ISBN-13: 9780262037952

Published to MIT Press Scholarship Online: September 2019

DOI: 10.7551/mitpress/9780262037952.001.0001

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Why Carbon Pricing Is Appealing

Why Carbon Pricing Is Appealing

(p.1) 1 Why Carbon Pricing Is Appealing
Can We Price Carbon?

Barry G. Rabe

The MIT Press

The use of taxes to elevate the price of popular commodities in order to reduce consumption and risks related to use did not originate with carbon taxes. Excise taxes on tobacco have been used aggressively by governments in the United States and beyond in recent decades to achieve significant reductions in smoking. Fossil fuel use has long been deemed by diverse economists as a viable target for a sequel, leading to innumerable reports and scholarly arguments making the case for a carbon price. This can take the form of either a direct tax on the carbon content of fossil fuels or a cap-and-trade system that allows for purchase of rights to release emissions at a price. Both are thought to offer effective paths to reduce emissions in a cost-effective manner.

Keywords:   carbon, price, pricing, tax, policy, policies, cap-and-trade, cap and trade, constitution, tobacco

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