Carbon Taxes Could Make Significant Dent in Climate Change, Study Finds – MIT News
Credit: Michael Caven
Article Synopsis – An extensive analysis by MIT researchers has concluded that putting a price on carbon, in the form of a fee or tax on the use of fossil fuels, coupled with returning the generated revenue to the public in one form or another, can be an effective way to curb emissions of greenhouse gases. What’s more, depending on the exact mechanism chosen, such a tax can also be fair and not hurt low-income households. The research team found that combining the basic strategy of providing tax breaks to corporations but adding a rebate to the low-income families most affected by the tax, could virtually eliminate the regressive aspects of the tax at very little cost in overall efficiency, and thus might be the most appealing option. To read the actual article click here.