The Case Against a U.S. Carbon Tax

The actual economics of climate change, as summarized in the peer-reviewed literature reveals that the case for a U.S. carbon tax is weaker than the carbon tax proponents claim. Both in theory and in practice, economic analysis shows that the overall case for a U.S. carbon tax is weak.

In recent years, several vocal intellectuals and political officials on the right have begun pitching a carbon tax to libertarians and conservatives. They argue that climate science respects no ideology and that a carbon tax is a market solution far preferable to the top-down regulations that the left will otherwise implement.

An actual critical analysis of the real-world carbon tax experiences in Australia and British Columbia show that the promises of a market-friendly U.S. carbon tax were violated in both scenarios. Even in the case of British Columbia—hailed by carbon tax advocates as the best example to date of such a policy—after an initial drop the tax has not yielded significant reductions in gasoline purchases, whereas it has apparently reduced the BC economy’s performance relative to Canada.

Click here to read the full publication →