Macroeconomic Analysis of Federal Carbon Taxes

An economy-wide federal carbon tax can significantly reduce US carbon dioxide emissions but will also impact the US economy. A modeling exercise examines these macroeconomic impacts and demonstrates the effects of the tax on consumer prices and welfare.

Issue Brief by Marc Hafstead, Lawrence Goulder, Raymond J. Kopp, and Roberton C. Williams III — 1 minute read — June 13, 2016