Carbon Tax More Efficient Than Cap-And-Trade: Study

Law360, New York (February 19, 2008, 12:00 AM EST) -- Instituting a carbon dioxide tax is a more efficient way of controlling carbon dioxide emissions than cap-and-trade approaches, according to a new report from the U.S. Congressional Budget Office.

Taxing carbon emissions is the “most efficient incentive-based option for reducing emissions and could be relatively easy to implement,” the study said.

A tax would mean charging a fee for each ton for carbon dioxide emitted or for each ton of carbon contained in fossil fuels, the report said, setting an upper limit on the cost of...
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