While it’s tempting to suggest that revenue from the tax should fund renewable energy or efficiency upgrades, our analysis shows that only a robustly-rising carbon tax can deliver the deep and broad CO2 emission reductions needed to avert climate disaster. To build public support and maintain the fairness needed for such a substantial carbon tax, we recommend returning all or nearly all revenue to taxpayers. See “Making a carbon tax income-progressive” and our blog post: “Which Carbon Tax: Robust or Miniature? (July 7, 2013)”
Pricing carbon efficiently and equitably
Carbon Tax Center
Pricing carbon efficiently and equitably