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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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Carbon Pricing Lessons

Carbon Pricing Lessons

(p.185) 7 Carbon Pricing Lessons
Can We Price Carbon?

Barry G. Rabe

The MIT Press

This chapter attempts to distil key lessons from recent decades of experience with carbon pricing. It notes that American emissions have actually dropped despite the lack of national carbon pricing and that future attempts to develop carbon pricing need to draw directly from past experience. This includes careful attention to building political constituencies, developing effective management systems, and setting politically realistic goals. The chapter also explores other forms of energy taxation that might serve to impose a carbon price but do so at the point of extracting fossil fuels from below the surface of the ground. Nearly all states that produce oil and gas impose severance taxes and they generally retain broad political support across partisan lines.

Keywords:   carbon, price, pricing, cap and trade, tax, policy, political, emission

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