The Macroeconomic Effects of a Carbon Tax to Meet the US Paris Agreement Target: The Role of Firm Creation and Technology Adoption

By considering the effects of a carbon tax on business creation and clean technology adoption, a new model finds that a tax creates a mild positive effect on economic activity and negligible effects on unemployment.

Working Paper (21-14) by Alan Finkelstein Shapiro and Gilbert Metcalf — 1 minute read — May 26, 2021



Alan Finkelstein Shapiro

Tufts University

Gilbert E. Metcalf

University Fellow