A Carbon Tax: The Lesser of Several Evils?
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Sebastian Rausch, CER-ETH, details in this week’s FEEM Seminar, a research dedicated to the efficiency and distributional implications of a carbon tax as part of a fiscal reform package in the United States. Both overall cost and distributional effects across generations vary significantly based on other taxes and spending measures included in that package, and change quite substantially depending on which of those measures is offset by the carbon tax revenue.