Carbon Tax Psychology

Abstract

So why does the idea of a carbon tax remain in political purgatory? Even detractors of carbon taxes would generally concede, in candid conversation, that a carbon tax is at least as effective or nearly as effective in reducing carbon dioxide emissions as other options, especially since most countries already collect taxes on fossil fuels. Most would also have to acknowledge that carbon taxes could address regressiveness concerns, and perhaps, given recent findings, perhaps even do so without revenue recycling.